Turkish Airlines Nears Agreement on Boeing Lease

Turkish Airlines Nears Boeing Lease Agreement Amid Fleet Strategy Challenges

Progress and Delays in Boeing Negotiations

At the Paris Air Show in Le Bourget, Turkish Airlines is approaching the final stages of securing a significant aircraft lease agreement with Boeing. While only minor issues remain unresolved, the process has been delayed following the June 12 crash of an Air India Boeing 787, which required Boeing representatives to travel to India, postponing the conclusion of talks originally expected at the event. Turkish Airlines Chairman Ahmet Bolat expressed optimism about the deal, stating that the parties are “very close” to finalizing terms. The outstanding points primarily involve pricing details, including engine costs, as the airline seeks a sustainable growth framework.

Addressing Delivery Delays Through Leasing

The airline’s fleet planning continues to be influenced by persistent delivery delays from both Boeing and Airbus. Bolat noted that manufacturers are increasingly informing Turkish Airlines of further postponements. In response, the carrier plans to sign lease agreements on June 17 with lessors Carlyle and Avolon for 14 narrowbody aircraft, consisting of both Boeing 737 MAX and Airbus A320neo models, scheduled for delivery in 2028. Bolat emphasized a pragmatic approach to fleet composition, stating that the airline does not differentiate between narrowbody types and aims to maintain an 8% growth rate despite the current shortage of aircraft. This leasing strategy reflects a broader industry trend, as technical issues—particularly with Pratt & Whitney PW1000G geared turbofan engines affecting the A320neo fleet—and ongoing supply chain disruptions compel airlines to rely more heavily on operating leases rather than outright purchases.

Strategic Outlook and Market Positioning

Turkish Airlines is also navigating complex market dynamics, including potential tariffs on EU-manufactured parts and aircraft, which could impact future fleet decisions. Competitors such as Ryanair and Qatar Airways face similar challenges, adjusting their fleet strategies amid supply chain and regulatory uncertainties. Bolat highlighted the airline’s ambition to increase tourism to Turkey’s rich cultural and historical destinations, noting that while visitors from Germany and the UK are substantial, French tourist numbers remain relatively low. He underscored the need to enhance Turkey’s image beyond its traditional sun-and-sea appeal.

Regarding its partnership with IndiGo in India, Bolat confirmed the continuation of the wet lease arrangement for Boeing 777 aircraft, following a brief extension granted by Indian authorities. He acknowledged India’s importance as a market but emphasized compliance with all regulatory requirements. Currently, Turkish Airlines serves only two Indian cities out of its extensive network of 253 destinations.

As Turkish Airlines moves closer to finalizing its Boeing lease agreement and expands its leased fleet, the airline continues to adapt its strategy to sustain growth and strengthen its global presence amid ongoing industry challenges.