Turkish Airlines (THY) may shift its recently announced order for Boeing 737 Max aircraft to rival Airbus if negotiations with engine supplier CFM fail to yield results, according to the national flag carrier's chair.
The unexpected warning comes after Turkish Airlines announced a tentative order with Boeing for 150 Max planes, coinciding with a meeting on Sept. 25 between President Recep Tayyip Erdoğan and his U.S. counterpart Donald Trump, subject to a separate engine deal.
Transatlantic venture CFM International, co-owned by GE Aerospace and Safran, is the sole engine supplier for the Boeing 737 Max and competes with RTX unit Pratt & Whitney for airline contracts on the Airbus A320neo family.
"If CFM comes to feasible economical terms, then we are going to sign with Boeing," THY Chair Ahmet Bolat told Reuters in Stockholm late on Wednesday. He added negotiations had made some progress, but disagreements on costs remained.
"If CFM continues its stance, we'll change to Airbus. With Airbus, I have choices," Bolat said, referring to the European planemaker's two engine suppliers.
CFM, the world's largest engine maker by the number of units sold, said: "As a matter of policy, CFM does not disclose details of contractual negotiations with our customers."
Boeing declined to comment. The widely watched deal is part of a major fleet replacement and expansion to around 800 aircraft by 2033, after Turkish Airlines ordered more than 200 Airbus planes in 2023.
Industry sources said they still expected a deal to be finalized with CFM, given the recent political attention to the order and scarce supplies of competing Airbus jets.
A spate of engine shortages and growing maintenance delays has driven up engine parts prices and led to growing discord between suppliers and airlines across the industry.
Airlines globally have voiced frustration over the disruption, including THY, which is facing delays linked to Pratt & Whitney engines on its existing Airbus fleet. Engine makers have argued they need to be rewarded for huge financial risks.
At the heart of the THY dispute is who should bear the most risk on the cost of long-term repairs, industry sources said. Jet engines are typically sold at a loss, but manufacturers make money on servicing spread over 20 years.
Rather than charge for repairs as they arise, they often strike long-term deals priced by the flight-hour. But a surge in the amount of wear and tear on modern engines has made this riskier for engine makers. THY is holding out for such a deal, sources said.
CFM has appeared less willing to grant such deals in recent years, preferring to pass more work to independent shops. But two industry sources said it has lately shown greater flexibility on hourly deals in exchange for higher prices.
Company officials told Reuters recently that CFM had never stopped giving long-term hourly deals and there had been no change in its strategy of shifting more work to third parties.
On a positive note for Boeing, Bolat said THY was still considering the troubled 777X mini-jumbo, despite recent reports of new delays, and was closely monitoring its development.
The world's largest twin-engined jetliner is now expected to be ready in 2027, some seven years behind its original schedule.
Bolat said THY remained in regular contact with Boeing, including discussions concerning the 777X, and was assessing which routes the aircraft would be best suited for.
"Once we have the right time, we're going to order some 777X," Bolat said, adding that THY was in no rush, however.
