Turkish Airlines is on the cusp of finalizing a significant aircraft order with Boeing, even as unforeseen circumstances have shifted the final stages of negotiations. A recent incident involving an Air India Boeing 787 meant that crucial discussions, initially hoped to conclude at the ongoing Paris Air Show, had to be postponed.

Bridging the Final Gap with Boeing

Turkish Airlines Chairman, Ahmet Bolat, confirmed at a roundtable on June 16 that the airline is "closing the final gap" with Boeing on a potential large aircraft acquisition. "I was hoping that we could close that here in Le Bourget but they had to fly to India for the event that happened," Bolat stated, referring to the Air India incident. He expressed optimism, adding, "I think we are very close."

The remaining hurdle in the negotiations primarily revolves around pricing, including engine costs, as Turkish Airlines aims to secure a deal that ensures sustainable growth for the carrier.

Strategic Lease Deals to Sustain Growth

In parallel with its discussions with Boeing, Turkish Airlines is actively pursuing short-term solutions to maintain its aggressive growth trajectory amidst ongoing delivery delays from aircraft manufacturers. Bolat announced plans to sign new lease agreements for 14 narrowbody aircraft at the Paris Air Show.

"Day by day, both manufacturers are informing us the aircraft are further delayed," Bolat noted. To counter this, the airline is strategically working with lessors. He confirmed that on June 17, Turkish Airlines would formalize deals with Carlyle and Avolon for these 14 new aircraft. These leased planes will include both Boeing MAX and Airbus Neo narrowbodies and are expected to be delivered in 2028. Bolat emphasized the airline's flexible approach to narrowbody types, stating, "We don’t really distinguish in the narrowbodies."

These operating leases are crucial for the airline to "continue to grow and maintain the 8% growth rate, even with the current shortage of aircraft," Bolat explained. The airline is also close to finalizing additional deals with other lessors, signaling a robust strategy to overcome current supply chain challenges.

Boosting Tourism to Turkey's Cultural Riches

Beyond fleet expansion, Bolat outlined Turkish Airlines' broader vision to promote tourism to Turkey's diverse cultural and historical sites. While acknowledging that "Most people are coming for sand and sea," he stressed the airline's efforts to "attract more tourists for cultural things."

He specifically highlighted the potential to increase French tourism to Turkey. Despite a strong French interest in cultural and historical destinations, only about 1 million French visitors travel to Turkey annually, compared to approximately 6 million German and 4.4 million UK visitors. Bolat acknowledged the need for more outreach, stating, "We have a lot of homework to do to let the French people know Turkey is not just sand and sea."

Update on IndiGo Partnership

When asked about the partnership with IndiGo in India, which includes the wet lease of Boeing 777s, Bolat confirmed its continuation. The agreement was initially set to conclude but has received a brief reprieve from the Indian government. "IndiGo at the moment is continuing. India is an important market for us, but we of course abide by all the rules and regulations," he affirmed. Bolat also noted that out of its 253 total destinations, Turkish Airlines currently flies to only two cities in India, indicating potential for further expansion in this crucial market.