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Boeing lands $11-billion 787 deal from resurgent Turkish Airlines

Boeing has landed 82 firm orders for the 787 so far this year

Julie Johnsson & Alexandra Stratton | Bloomberg 

Boeing
Boeing’s carbon-composite Dreamliners will help upgrade Turkish’s fleet of long-range aircraft. Photo: Reuters

said it intends to purchase 40 of Boeing’s 787-9 Dreamliners, a long-awaited deal that signals the carrier’s rebound following a terrorist attack on its hub last year.

When finalised, the order would be valued at almost $11 billion before the customary discounts for large aircraft purchases. The pact, unveiled during a brief signing ceremony in on Thursday, came after years of market studies and negotiations for wide-body planes as the airline plotted its expansion.

Boeing’s carbon-composite will help upgrade Turkish’s fleet of long-range aircraft as it competes with other Middle Eastern airlines amid slowing growth in the region. The carrier’s expansion would hasten President Recep Tayyip Erdogan’s goal of making one of the world’s premier air travel hubs. The airline already has 75 737 Max jets on order, according to the planemaker’s website.

Turkish plans to shift operations from Istanbul’s to a new hub, which is due to open at the end of the year. “It’s very exciting for them and it’ll open so many new gateways,” said Marty Bentrott, vice president of sales for the Middle East, Russia and Central Asia. “These airplanes are part of that growth plan.”

The deal underscores continued interest from the airline industry in mid-sized twin-aisle aircraft even as sales taper for planes that seat more than 400 travelers. has landed 82 firm orders for the 787 so far this year. The total could swell if the Chicago-based manufacturer formalises additional commitments such as the one for eight 787 announced by Malaysia’s Prime Minister Najib Razak during a White House visit this month.

Citing the sales pick-up, CEO Dennis Muilenburg recently announced plans to speed production of its Dreamliner by 17 per cent in 2019. The 14-jet monthly pace would be a record for complex twin-aisle aircraft like the 787, which is Boeing’s most advanced.

It would also give a competitive advantage over rival Airbus SE by opening more delivery slots for the sold-out jet. The European planemaker has been gradually stepping up output of its A350 after early deliveries were disrupted by late cabin equipment.

Turkish, officially known as Turk Hava Yollari AO, has sought to take advantage of Istanbul’s historic role as a global crossroads linking east and west. Persian Gulf carriers such as Dubai’s Emirates Airline and Doha-based Qatar Airways have pointed the way with networks built on connections through their home hubs.

The Istanbul-based carrier for a time mulled ordering Airbus SE’s A380, the superjumbo favored by Emirates, or Boeing’s humpbacked 747-8 jumbo. Those four-engine planes have fallen out of favour as airlines bypass large hubs to connect smaller cities directly.

With the Dreamliner agreement, also pledged to work with the Turkish government to accelerate the growth of the country’s aerospace industry. The initiative outlines a strategic framework aimed at bolstering research, engineering and skills development for Turkish carriers, service and suppliers.

First Published: Sat, September 23 2017. 02:51 IST
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