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Turkish Airlines could switch Boeing 737 MAX order to

Airbus

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Costs key issue in disagreement with supplier CFM over

engines

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CFM is the sole engine supplier for the Boeing 737 MAX

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Turkish carrier open to ordering 777X planes in the future

By Marie Mannes

STOCKHOLM, Oct 9 (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 warning comes after the Turkish flag carrier announced a

tentative order with Boeing ( BA ) 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 ( BA )," 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, did not immediately respond to a request for comment.

Boeing ( BA ) declined to comment.

The 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

reached, given the recent political attention to it and scarce

supplies of competing Airbus jets. But the comments highlight

recent tensions in the jet engine market.

A spate of engine shortages and growing maintenance delays

have driven up engine parts prices and led to growing discord

between suppliers and airlines across the aviation 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

say they need to be rewarded for huge financial risks.

THY OPEN TO PLACING ORDER ON DELAYED BOEING 777X

On a positive note for Boeing ( BA ), Bolat said THY was still

considering placing orders for the troubled 777X mini-jumbo,

despite recent reports of further setbacks to the long-delayed

programme, and was closely monitoring its development.

Boeing's ( BA ) 777X, the world's largest twin-engined passenger

plane, has faced repeated delays and is now expected to be ready

in 2027, some seven years behind its original schedule.

Bolat said THY remained in regular contact with Boeing ( BA ),

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 to order.