BOEING LANDS US$11B TURKISH AIR DEAL
Planemaker plans to boost production of Dreamliner by 17pc in 2019
TURKISH Airlines said it intends to purchase 40 of Boeing Co’s 787-9 Dreamliners, a longawaited deal that signals the carrier’s rebound following a terrorist attack on its Istanbul hub last year.
When finalised, the order would be valued at almost US$11 billion (RM46.18 billion) before the customary discounts for large aircraft purchases. The pact came after years of market studies and negotiations for wide-body planes as the airline plotted its expansion.
Boeing’s carbon-composite Dreamliners 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 Istanbul one of the world’s premier air travel hubs. The airline already has 75 Boeing 737 Max jets on order, according to the planemaker’s website.
Turkish plans to shift operations from Istanbul’s Ataturk Airport 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, Boeing vicepresident 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 travellers.
Boeing has landed 82 firm orders for the 787 so far this year.
The total could swell if the manufacturer formalises additional commitments such as the one for eight 787 Dreamliners announced by Prime Minister Najib Razak during a White House visit this month.
Citing the sales pick-up, Boeing chief executive officer 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 twinaisle aircraft like the 787, which is Boeing’s most advanced.
It would also give Boeing 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. Bloomberg