Turkish Airlines Secures Massive Boeing Deal After Engine Dispute

Turkish Airlines secured a massive deal for up to 150 Boeing 737 MAX jets in September, but the negotiations behind this agreement were far from straightforward.

The airline's chairman, Ahmet Bolat, openly threatened to switch to Airbus if CFM International, the engine manufacturer for the Boeing 737 MAX family, didn't adjust its pricing and maintenance costs. This marked a rare instance of an airline publicly pressuring an engine manufacturer.

A compromise was eventually reached, with Boeing agreeing to expand local LEAP engine maintenance capabilities in Turkey and sign a strategic memorandum on industrial participation, focusing on technology transfer and sustainability.

The deal consists of 100 firm orders for the Boeing 737-8, with options for an additional 50 jets. Based on current list prices, the deal value is over $30 billion. However, airlines typically secure significant discounts, so the actual cost is likely to be lower.