Turkish Airlines, Boeing near deal on stalled 737 MAX order
Dhaka: Boeing is close to finalizing a delayed order for 150 of its 737 MAX jets after Turkish Airlines threatened to walk away from the deal amid a dispute with engine maker CFM over maintenance terms, said media reports, citing sources familiar with the matter.
The order forms part of a broader 225-jet package announced last year following a meeting between Turkish President Tayyip Erdogan and U.S. President Donald Trump. The deal had stalled over the airline's request for an industrial arrangement on engine maintenance but is now back on track, three sources said, adding it could be signed next week.
Airlines have increasingly sought long-term engine maintenance agreements alongside new jet orders, as supply chain shortages and rising spare-parts costs squeeze margins across the industry.
Confirming the order would spare the White House an awkward reversal of last year's announcement. Turkish media reports suggest Trump and Erdogan may meet again next week during United Nations General Assembly gatherings in New York.
The core disagreement centers on which party should shoulder greater risk for long-term repair costs, according to industry sources.
Turkish Airlines, which operates a mixed fleet of more than 400 Boeing and Airbus aircraft, unexpectedly threatened last year to drop the 150 MAX jets and pivot to Airbus, citing pricing disputes with CFM.
The carrier had also sought to establish its own engine maintenance facility by joining CFM's top-tier "Premier" partner group, granting faster access to advanced repair technology. It remains unclear whether both sides have settled on this arrangement.
GE Aerospace CEO Larry Culp last October compared the airline's public threat to "negotiating new deals in public," defending GE's pricing as reflective of customer value.
Separately, a senior Turkish Airlines executive told an industry conference this week that the carrier is still weighing additional orders to support the rapid growth of its Istanbul hub.
The airline evaluating regional jets like the Embraer E-Jet E2 and Airbus A220 alongside larger widebodies such as the Boeing 777X and Airbus A350-1000, said Senior Vice President of Finance Okan Bas.
