Turkish Airlines Closes in on 737 MAX Deal with Boeing

Turkish Airlines has been in negotiations with Boeing over a massive order of 737 MAX aircraft, and after months of delay, it seems like an agreement is finally within reach. According to Reuters, the two parties are close to finalizing a deal for 150 planes, which would be part of a larger package of 225 aircraft announced last year.

The hold-up was not over the aircraft themselves but rather over engine maintenance terms with CFM International, the sole supplier of engines for the 737 MAX. Turkish Airlines wanted an industrial arrangement that would bring LEAP engine maintenance work to Türkiye, and it has reportedly been pushing for this concession as a condition of signing the deal.

CFM International is a joint venture between GE Aerospace and Safran, and it supplies not only the engines but also maintenance services. However, Turkish Airlines argues that having control over these services would be beneficial for its operations and would allow it to reduce costs and turnaround times on its own fleet.