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After a lengthy dispute over the pricing for CFM International engines expected to be installed on its future fleet of Boeing 737 MAX jets, 
Turkish Airlineshas announced an official order for 150 airframes. The single-aisle jets are part of a larger procurement plan that also includes 75 Boeing 787 Dreamliners.
According to Boeing, Turkish Airlines has made a firm purchase deal for 100 737-8 jets with an option to buy a further 50 737 MAXs in the future. An approximate estimate of the total value of the production order is in excess of $30 billion based on today’s list prices and currency rates. The Turkish carrier had strongly considered switching its narrowbody commitment to Airbus due to its dispute with CFM.
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Negotiations began last year after US President Donald Trump met with Turkish President Recep Tayyip Erdoğan. Prof Murat Şeker, Turkish Airlines chairman of the board and the executive committee, remarked in the joint press release following the successful agreement that the airline was pleased with the result, especially given that it also supports “Türkiye’s aviation ecosystem.”
Stephanie Pope, president and CEO of Boeing Commercial Airplanes, joined Şeker and Erdoğan for the signing and commented that the planemaker was “proud to continue our support of Türkiye’s aviation ecosystem.” President Erdoğan presided over the finalization of the contract and signing ceremony. To make the event even more noteworthy is the tumultuous process that led to the historic deal.
The initial order last fall came with one of the most visible threats to Boeing by any carrier in recent years, as leadership from Turkish openly stated that they were considering going with Airbus if CFM engine and service prices were not satisfactory. Ahmet Bolat, chairman of Turkish Airlines, said in a Reuters interview last year.
“If CFM comes to feasible economic terms, then we are going to sign with Boeing … If CFM continues its stance, we’ll change to Airbus. With Airbus, I have choices.”
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At the crux of the dispute between Boeing and Turkish is the point emphasized by Bolat, because the Airbus A320neo family offers airlines a choice between two engine manufacturers, CFM or Pratt & Whitney. Although the exact details are not publicly available, whatever terms were initially presented for the flyaway price of the turbofans and subsequent follow-on service plan were clearly far too costly.
The breakthrough finally came when all parties compromised on engine pricing, repair risks, local workshare, and likely updated infrastructure investment as well. Part of the ultimate resolution involved addressing Turkish Airlines’ strategic interest in establishing its own additional LEAP engine maintenance capabilities in Turkey, according to Air Data News.
To maximize fleet flexibility, Boeing also granted Turkish Airlines the right to substitute the ordered jets for the larger 737 MAX 10 variant with its 50 optional order slots. The longest variant of the 737 MAX family has yet to enter full production, but certification is expected in the coming months. Once planes begin to roll off the line, Turkish will have a comfortable backup plan to swap midsize narrowbodies for the extended model.
Turkish Airlines Future-Proofing the Fleet’s Backbone
In combination with subsidiary AJet, Turkish already has more than 200 Boeing aircraft. That fleet includes the 737 MAX, 787 Dreamliner, 777, 737 Next-Generation, and 777 Freighter. Supplementary 737-8 airframes will provide it with a boost in numbers for the most flexible aircraft in the inventory. As the mid-size variant of the 737 MAX lineup, the aircraft is famed for what many in the industry refer to as the operational ‘sweet spot’, with its ideal balance between payload, range, capacity, and fuel efficiency.
The MAX 8 is the best-selling version of the MAX family today, owing to its highly adaptable mission set, which makes it perfect for both domestic and international itineraries. Turkish prides itself on having the longest list of international destinations, and with more countries on its roster than any other carrier on the planet. Thus, the 737-8 is an ideal aircraft to be the workhorse of the mainline fleet to handle the bulk of staple routes throughout the network.
