This deal is particularly significant for Boeing as it represents a win over its European rival.
Pegasus Airlines, a Turkish low-cost carrier established in 1990, is a major player in Turkey's aviation industry. The airline operates flights from Istanbul Sabiha Gökçen Airport, covering both domestic and international destinations. Known for its budget-friendly services, Pegasus is the second-largest airline in Turkey and serves key markets in Europe, the Middle East, and Asia with a diverse fleet of aircraft.
A Strong Rebound for Boeing After a Tumultuous Year
Pegasus is set to continue expanding and strengthening its global presence in the years ahead, with one of the company’s most significant future projects being the purchase of 200 aircraft. As part of this expansion, Boeing recently secured a major contract with Pegasus, marking a notable rebound for the aerospace giant after a difficult 2024. The contract, announced on Thursday, is the largest aircraft deal in the history of Pegasus Airlines and focuses on renewing the airline's fleet.
Pegasus has placed a firm order for 100 Boeing 737 Max 10 aircraft, with an option to purchase up to 100 additional units in the future. The total estimated value of the deal, excluding the options, is around $18 billion, although experts believe Pegasus likely received a significant discount due to the size of the order. This deal is particularly significant for Boeing as it represents a win over its European rival, Airbus, and helps boost Boeing’s morale after a challenging year.
Delivery Timeline and Future Options
The first delivery of the 100 Boeing 737 Max 10 aircraft is scheduled for 2028. CEO Güliz Öztürk has stated that the remaining 100 aircraft options could potentially be converted into firm orders based on market conditions and the airline’s fleet needs in the coming years. The 737 Max 10, which is the largest variant in Boeing’s Max series, can accommodate up to 230 passengers, and Pegasus has chosen this model for its fleet renewal.
2024 was a difficult year for Boeing, as it faced multiple setbacks, including safety concerns and labor strikes. In early 2024, a safety incident involving an Alaska Airlines flight prompted the Federal Aviation Administration (FAA) to ground the 737 Max 9 models for nearly a month. Additionally, Boeing dealt with production delays due to a 53-day strike by workers at its manufacturing plants. As a result, the deal with Pegasus provides a much-needed positive outcome for Boeing, helping to restore confidence in the company’s future.
Is Pegasus Switching Aircraft Manufacturers?
Although Pegasus’s fleet currently includes only nine Boeing aircraft, the bulk of its fleet consists of Airbus models, specifically the A320 and A321 families. This shift in aircraft manufacturers has raised questions about the airline’s strategic decision-making, as changing suppliers can involve significant training, logistical, and technical challenges. However, despite these obstacles, Pegasus management has decided that the long-term benefits of transitioning to Boeing will outweigh these initial hurdles. The airline’s decision to place this large order reflects its confidence that Boeing will provide the necessary support and help meet its evolving fleet requirements.
Turkey’s Tourism and Aviation Sectors Enjoy Substantial Growth
Turkey’s tourism sector is experiencing significant growth, with the government setting ambitious goals to attract 100 million visitors annually and generate over $100 billion in tourism revenue. The government is making substantial investments in the aviation industry to achieve these targets. One key example of this is the major aircraft orders placed by Pegasus Airlines, which will help meet the increasing demand for travel in the years ahead.
The large order from Pegasus reflects the growing momentum in Turkey’s aviation industry, a trend mirrored globally. Leading airlines such as Saudia, Cathay Pacific, IndiGo, Riyad Air, El Al, EVA Air, and Air India have all made significant aircraft purchases from Boeing and Airbus. In addition, China’s domestically-produced Comac C919 has sparked interest from local carriers, resulting in considerable orders.
In conclusion, the deal with Pegasus highlights Boeing’s successful recovery in 2024 and signals positive prospects for both Turkey’s aviation and tourism industries in the future.
