Turkish Airlines has signed a letter of intent (LOI) to order 40 Boeing 787-9 aircraft in a deal worth $11 billion dollars at list prices. According to Boeing, the order will be firmed up at a later date.
"The 787 Dreamliner is the most technologically advanced airplane in the world," said M. İlker Aycı, chairman of the board and the executive committee, Turkish Airlines. "Our intent to purchase these Dreamliners is to meet the demand for wide-body airplanes at the 3rd Airport, further strengthen our fleet capacity on the 100th anniversary of the Republic and to enhance passenger satisfaction."
In addition to the order, Boeing and the Turkish government have announced the creation of the Boeing-Turkey National Aerospace Initiative, a partnership between Boeing, Turkish aircraft suppliers, airlines, and the Turkish government. The Turkish Government’s sovereign wealth fund currently holds a 49.2% stake in Turkish Airlines.
"Boeing's relationship with Turkey spans more than 70 years and we have outstanding long-term partnerships," said Ray Conner, Boeing vice chairman. "Working together with Turkey, we are now taking our collaboration to the next level, which will accelerate the growth of the Turkish aerospace industry while achieving Boeing's long-term objective to expand its presence in the marketplace."
A resurgent carrier
Geopolitical tumult stemming from a failed military coup attempt, the bombing of Ataturk International Airport, and security concerns from the Syrian Civil War led to a slowdown in growth and profitability for Turkish Airlines in 2016.
In the first half of 2017, Turkish Airlines has improved its financial health with revenue and operating profit both up from 2016. The deal for 40 787-9 aircraft also reaffirms Turkish Airlines’ commitment to its ambitious growth rates, especially in the long-haul sector.
In addition to the order for 787-9s, Reuters has reported that Turkish Airlines is in talks with Airbus to order 40 A350-900 aircraft. Turkish Airlines currently operates a mixed fleet of Airbus and Boeing aircraft.
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