In a significant development for the aviation industry, Turkish Airlines is reportedly on the verge of striking a massive deal with Boeing Co. BA for a fleet expansion that could include up to 250 jetliners.
What Happened: Turkish Airlines is in the final stages of discussions with Boeing to procure an estimated 250 aircraft, Bloomberg reported on Tuesday. The deal is believed to encompass a mix of Boeing 737 Max jets, numbering between 150 and 175, along with the larger 787 Dreamliner models.
Ahmet Bolat, the Chairman of Turkish Airlines, announced these negotiations at the International Air Transport Association’s annual meeting in Dubai. Although discussions about pricing, commercial terms, and engine costs are ongoing, a definitive timeline for the agreement’s finalization remains uncertain.
In April, Bolat indicated that the airline was contemplating an additional order of 235 aircraft, which would include a variety of both narrow and widebody models.
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Why It Matters: Boeing has been working to rebuild its reputation following a series of quality control issues, including a near-disaster with a 737 Max earlier in the year. The company is set to present a corrective action plan to the FAA to address these concerns.
Moreover, the head of the International Air Transport Association recently emphasized the need for Boeing to learn from its past mistakes, especially after a midair panel blowout on a 737 MAX plane. This deal with Turkish Airlines could signify a turning point for Boeing, demonstrating renewed confidence in its aircraft from a major airline.
For Turkish Airlines, the deal with Boeing, coupled with its previous order of 220 Airbus aircraft, is part of an aggressive expansion strategy. The airline is evidently aiming to enhance its global footprint and modernize its fleet with the latest generation of aircraft from both major manufacturers.
Price Action: On Tuesday, Boeing was trading 0.04% lower at $184.50 in the pre-market after it closed at $184.57, according to Benzinga Pro.
Photo courtesy: Shutterstock and Wikimedia
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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