Boeing is nearing finalization of a delayed order for 150 737 Max aircraft after Turkish Airlines had threatened to abandon the high-profile deal amid a dispute over maintenance with engine maker CFM, a report said Wednesday.
Part of a 225-jet package unveiled after a meeting between President Recep Tayyip Erdoğan and Donald Trump last year, the deal has been stalled by disagreement over the airline's demand for an industrial arrangement covering engine maintenance.
But the agreement is back on course and may be signed next week, Reuters said Wednesday, citing sources familiar with the matter.
Boeing and engine maker CFM, co-owned by GE Aerospace and France's Safran, declined to comment. Turkish Airlines did not respond to a request for comment.
Squeezed by recent supply chain shortages and rising spares prices, airlines are increasingly negotiating long-term engine deals at the same time as ordering new jets, injecting greater complexity into headline-generating aircraft deals.
Turkish media reports said Erdoğan and Trump are expected to meet again next week, coinciding with United Nations General Assembly gatherings in New York.
At the heart of the dispute is who should bear the most risk on the cost of long-term repairs, industry sources said.
'Premier' maintenance plant
Turkish Airlines is one of the world's largest carriers with a mixed fleet of more than 400 Boeing and Airbus jets.
Weeks after announcing the broader Boeing deal last year, it threatened to ditch the 150 Max jets included in the order and switch to Airbus, citing a dispute with CFM over prices.
Industry sources later said the airline also wanted to open its own maintenance plant for engines that power the 737 Max by directly joining the top tier of CFM partners, a move that would grant accelerated access to the latest repair technology.
It was not immediately clear whether the two sides had reached agreement on the so-called "Premier" maintenance plant.
On Monday, a senior Turkish Airlines executive told an industry conference that the carrier continued to weigh more aircraft orders to feed the rapid expansion of its Istanbul hub.
The airline is studying regional jets such as the Embraer E2 or Airbus A220 while also comparing the much-larger Boeing 777X and Airbus A350-1000, Okan Baş, senior vice president in charge of finance, told the International Society of Transport Aircraft Trading (ISTAT) meeting.
He declined to comment on the pending Boeing Max order.