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Boeing Shares Under Pressure as Turkish Airlines Considers Switching 737 MAX Order to Airbus

Boeing Shares Decline Amid Turkish Airlines’ Potential Shift from 737 MAX to Airbus
Boeing shares experienced notable pressure on Thursday following reports that Turkish Airlines is considering redirecting a substantial order for 737 MAX aircraft to Airbus. This potential change hinges on the outcome of ongoing negotiations with CFM International, the exclusive engine supplier for the 737 MAX, as the airline seeks more favorable pricing terms.
Negotiations and Strategic Considerations
Turkish Airlines Chairman Ahmet Bolat conveyed to Reuters that the airline remains open to finalizing its commitment to Boeing’s 737 MAX contingent upon CFM offering economically viable terms. Bolat acknowledged some progress in discussions but emphasized that disagreements over costs persist. He stated, “If CFM comes to feasible economical terms then we are going to sign with Boeing,” while also warning that “If CFM continues its stance, we'll change to Airbus.” Bolat highlighted the advantage Airbus holds by employing multiple engine suppliers, granting airlines greater flexibility in their procurement decisions.
This development arrives at a critical juncture for both Boeing and Turkish Airlines. The carrier recently placed a firm order for up to 75 Boeing 787 Dreamliners and expressed intent to expand its 737 MAX fleet, potentially doubling its Boeing aircraft count. However, the unresolved engine pricing dispute has intensified speculation about a possible pivot to Airbus, underscoring the fierce competition between the two aerospace leaders.
Market Impact and Industry Implications
The market responded swiftly to the news, with Boeing’s stock declining 3.2% during afternoon trading, making it the second-most discussed ticker on Stocktwits. Interestingly, despite the share price drop, retail investor sentiment toward Boeing improved from ‘neutral’ to ‘bullish’ compared to the previous day, with message volumes remaining steady.
Should Turkish Airlines proceed with switching its order, the ramifications could be substantial. Such a move would affect Boeing’s order backlog and potentially influence pricing strategies, marketing approaches, and delivery timelines industry-wide. The rivalry between Boeing and Airbus continues to be a defining factor in airline fleet decisions globally, with engine supplier negotiations playing a pivotal role in shaping outcomes.
Reuters further reported that Turkish Airlines had earlier announced plans to acquire 75 Boeing 787 aircraft and had completed negotiations for 150 737 MAX jets, contingent on the resolution of engine-related issues. Meanwhile, Boeing awaits conditional antitrust approval from the European Union for its proposed acquisition of Spirit AeroSystems, with clearance expected once concerns, including the divestiture of certain Spirit businesses, are addressed.
Despite recent volatility, Boeing shares have demonstrated resilience, gaining 23% year-to-date and nearly 49% over the past twelve months, reflecting sustained investor interest amid evolving industry dynamics.

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