Published by Global Banking & Finance Review®
Posted on October 9, 2025
4 min readLast updated: January 21, 2026
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Turkish Airlines may switch its Boeing 737 order to Airbus if engine talks with CFM International don't progress. Disagreements on costs persist.
By Marie Mannes and Tim Hepher
STOCKHOLM/PARIS (Reuters) -Turkish Airlines could switch a recently announced order for Boeing 737 MAX jets to rival Airbus if talks with engine supplier CFM fail to make progress, the airline's chair Ahmet Bolat said.
The unexpected warning comes after the Turkish flag carrier announced a tentative order with Boeing for 150 MAX planes, coinciding with a meeting on September 25 between Turkish President Tayyip Erdogan 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.
DISAGREEMENT ON COSTS
"If CFM comes to feasible economical terms, then we are going to sign with Boeing," 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 (THY) ordered more than 200 Airbus planes in 2023.
Industry sources said they still expected a deal to be finalised with CFM, given the recent political attention to the order and scarce supplies of competing Airbus jets.
SHARING RISKS
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.
THY OPEN TO PLACING ORDER ON DELAYED BOEING 777X
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.
(Reporting by Marie Mannes in Stockholm, Tim Hepher in Paris, additional reporting by Joanna Plucinska, Ceyda Caglayan; Editing by Adam Jourdan, Emelia Sithole-Matarise, Rod Nickel)
The Boeing 737 MAX is a series of aircraft developed by Boeing, known for its fuel efficiency and advanced technology, primarily used for short to medium-haul flights.
Airbus is a European multinational aerospace corporation that designs, manufactures, and sells civil and military aeronautical products worldwide.
Fleet expansion refers to the process by which an airline increases the number of aircraft in its operational fleet to enhance capacity and service routes.
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