Cablegate: Turkish Airlines to Purchase Eight More Boeings

This record is a partial extract of the original cable. The full text of the original cable is not available.

030822Z Aug 05

UNCLAS ANKARA 004495

SIPDIS

USDOC FOR 4212/ITA/MAC/CPD/DDEFALCO

E.O. 12958: N/A
TAGS: EAIR BEXP TU
SUBJECT: TURKISH AIRLINES TO PURCHASE EIGHT MORE BOEINGS
CRAFT

1. SUMMARY: TURKISH AIRLINES ANNOUNCED LAST MONTH THAT IT
HAD ORDERED AN ADDITIONAL EIGHT 737-800 AIRCRAFT FROM BOEING
CO., EXERCISING AN OPTION RELATED TO AN ORDER OF 15 AIRCRAFT
IN 2004. END SUMMARY.

2. TURKISH AIRLINES ANNOUNCED ON JULY 1 ITS ORDER OF AN
ADDITIONAL EIGHT 737-800 AIRCRAFT FROM BOEING CO., PART OF
ITS STATED PLAN TO MORE THAN DOUBLE ITS FLEET IN COMING
YEARS. LAST YEAR TURKISH AIRLINES ANNOUNCED PLANS TO
PURCHASE 15 737-800'S AND TOOK AN OPTION TO BUY ANOTHER
EIGHT, AS WELL AS ORDERING 36 AIRCRAFT FROM AIRBUS. THE
EIGHT PLANES ARE VALUED AT $524 MILLION AT LIST PRICE.

3. TURKISH AIRLINES HAS MAINTAINED A MIXED INVENTORY OF
BOEING AND AIRBUS AIRCRAFT, BUT LAST YEAR'S PURCHASES TIPPED
THE BALANCE IN FAVOR OF AIRBUS. TURKISH AIRLINES HAS A
PROPENSITY TO SELECT AIRBUS WIDE-BODIES FOR LONG-RANGE
INTERNATIONAL ROUTES, BUT HAS FAVORED THE BOEING 737 FOR
INTRA-EUROPEAN, MIDDLE EAST, CENTRAL ASIA, AND DOMESTIC
FLIGHTS. THE 737-800 IS THE AIRPLANE OF CHOICE AT THY TO
INCREASE FLIGHT RANGE VIS-A-VIS ITS EXISTING FLEET.

4. THE GOT FLOATED 25 % OF TURKISH AIRLINES SHARES AS A
PUBLIC OFFERING ON THE ISTANBUL STOCK MARKET AT THE END OF
2004. THE GOT HAS SAID IT PLANS ADDITIONAL OFFERINGS OF THY
UNDER ITS IMF-BACKED PRIVATIZATION PROGRAM, BUT HAS NOT SET
UP A FIRM TIMETABLE.

McEldowney

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