Dubai – Turkish Airlines (THY) Chairman of the Board and Executive Committee, Ahmet Bolat, announced today in Dubai that Turkey’s national airline is in advanced negotiations with Boeing for the purchase of 250 aircraft.
During the International Air Transport Association’s (IATA) annual general meeting (AGM), Bolat stated that THY is discussing target prices, commercial terms, and engine costs for 150 narrow-body 737 MAX and 75 wide-body Boeing 787 aircraft.
“We have completed our dealings with Airbus. We placed an order for 385 aircraft, some firm and some optional. We will decide within three to four years whether to exercise these options,” Bolat said.
THY aims to double its current fleet of 455 aircraft from Boeing and Airbus to 810 jets within ten years. Bolat mentioned that due to Boeing’s ongoing production challenges, orders might shift to Airbus. “With our existing fleet and Airbus orders, we can reach the 810 aircraft target without any changes,” he said. However, to diversify risks, they plan to work with both Boeing and Airbus. “Boeing has some production issues which could eventually affect Airbus as well. Therefore, we want to mitigate risks by collaborating with both manufacturers.”
Bolat expressed confidence that Boeing will resolve these issues soon. “Boeing is taking strong steps and making changes in its top management. I believe the new COO, Stephanie Pope, will address the current problems,” he said.
Over the past 20 years, THY has expanded its fleet 6.7 times with a total of 424 aircraft orders, including 126 wide-body, 281 narrow-body, and 17 cargo planes. Bolat noted, “In 2023, we had a fleet of 65 aircraft. We aim to increase this to 810 aircraft within ten years. We are confident in achieving this. Our average growth rate over the past 20 years has been 12.3%, almost three times the IATA average. Except for 2016 and 2020, THY has been profitable every year in the last 20 years. Our growth is sustainable,” he said.
Bolat stated that negotiations with Boeing are at the tender stage, with no set timeline for the final agreement. The order will depend on engine prices and availability. While Boeing predominantly uses engines from General Electric (GE) and Pratt & Whitney, Airbus uses engines from GE, Pratt & Whitney, and Rolls-Royce. “There is a motor issue with Boeing’s MAX. With Airbus, you can choose either the geared turbofan (GTF) or CFM International’s LEAP engines. The MAX has only one engine option, the CFM engine, so the MAX order depends on CFM prices,” he explained.
Bolat mentioned that currently, five of THY’s 28 Airbus A321-200NX and nine A320-200N aircraft are out of service due to necessary engine inspections following the discovery of contaminants in the powdered metal used during production. “The issue isn’t worsening, but we are hearing some reports about other engine types. There are very few alternatives to the LEAP engines in the market. These engines provide 15% more fuel efficiency with their advanced technology, but such advancements come with expected issues,” he said.
Bolat is confident that the programs developed by Pratt & Whitney will be implemented within two years and resolve these issues. “We expect the issues to be resolved within two years and will seek compensation for our losses from the manufacturer,” he said.
2023 Performance
Last year, THY carried over 83 million passengers and 1.9 million tons of cargo. Bolat stated that they expect to carry 90 million passengers this year. The profit for 2023 increased to $4 billion from $3.2 billion in 2022.
Bolat mentioned that Turkey received approximately 4.5 million visitors from the Middle East, with a distribution of point-to-point traffic and transfer traffic at about 40:60.
AnadoluJet also performed well, but growth was limited due to a lack of new aircraft. “We signed lease agreements for 36 new-generation MAX aircraft but couldn’t take delivery. Within two years, 85% of the AJet fleet will be new generation. By 2033, the AJet fleet will consist of 200 aircraft,” he said.
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