As 2024 comes to a close, Boeing is finishing on a positive note. The company revealed a substantial agreement for up to 200 aircraft on Thursday.
Turkish low-cost carrier Pegasus is revamping its fleet with a firm order for 100 Boeing 737 Max 10 jets, with the option to purchase an additional 100 in the future.
Pegasus indicated that this decision was made after thorough assessments of its aircraft needs for 2028 and beyond. This marks the largest aircraft deal in the airline's 34-year history.
Even without the additional options, the primary order carries a list price of around $18 billion. However, given the scale of the contract, it is expected that Pegasus negotiated a discount from the standard pricing.
This agreement is a welcome development for Boeing, which has faced a year filled with safety concerns, labor disputes, and internal challenges.
Earlier this year, an incident involving an Alaska Airlines flight, where a door plug detached shortly after takeoff, resulted in rapid cabin decompression. Fortunately, there were no injuries, but the event led the Federal Aviation Administration to ground certain 737 Max 9 variants for nearly a month.
From September to November, a significant strike by members of the International Association of Machinists and Aerospace Workers (IAM) severely impacted production of Boeing's top-selling 737 Max aircraft. It was only last week that production facilities returned to normal operations.
In addition to its size, the Pegasus deal is noteworthy because the Turkish airline currently operates only nine Boeing aircraft within a fleet of nearly 120, the remainder being A320 and A321 models from Airbus. Pegasus management likely determined that the complexities involved in switching manufacturers are outweighed by the advantages of this new deal.
The initial delivery of Pegasus Airlines' 100 Boeing 737 Max 10 aircraft is scheduled for 2028. Güliz Öztürk, the CEO of the low-cost airline, stated that the company will assess the possibility of converting the remaining 100 aircraft options into firm orders in the upcoming years, depending on market dynamics and fleet requirements.
Pegasus has chosen the -10 variant, which is the largest among the four Max models available from Boeing. Although the airline has not revealed its specific seating arrangement, the aircraft has the capacity to accommodate up to 230 passengers.
This Turkish contract concludes a dynamic year for aircraft acquisitions, with significant orders also reported from Saudia, Cathay Pacific, IndiGo, Riyadh Air, El Al, EVA Air, and Air India for both Airbus and Boeing aircraft. Additionally, the Comac C919, China's newly developed domestic aircraft, has garnered substantial orders from local airlines.
These developments occur during a bustling period for Türkiye's tourism industry, as the government in Ankara aims to attract 100 million visitors annually, generating over $100 billion in tourism revenue.