Boeing Secures Massive $36 Billion Order from Pegasus Airlines

Boeing has secured a huge order worth $36 billion from Pegasus Hava Tasimaciligi AS, a low-cost airline in Turkey. This is a significant deal for Boeing, as it pushes ahead in 2023 and competes with Airbus, which was previously Pegasus’s main choice.

Pegasus has ordered 100 of Boeing’s latest 737 Max 10 planes, which are not yet approved for flying. They expect to start getting these new planes in 2028, with the option to buy another 100 if they want. The total value of this order could grow even more if Pegasus decides to convert the options into firm orders.

This order is the largest in Pegasus’s history and is a vital win for Boeing, especially after a tough year with a long worker strike and an accident earlier this year. Just two years ago, Pegasus announced they wanted to buy only Airbus planes.

The news caused Boeing’s stock price to rise by about 4% during trading in New York, hitting a peak not seen in four months. Boeing is hoping to finish the year on a strong note, having also sold 14 planes to China Airlines earlier.

Kelly Ortberg, the new CEO of Boeing, is seeing a boost in customer confidence, according to an analyst. The company is also getting back to full production after the strike, making it a crucial time for new orders.

Pegasus plans to expand its services and fly to more destinations in North Africa and the Baltic states. Currently, they have over 100 planes, mostly Airbus, but this new order marks a shift towards Boeing for the future. The airline stated that they will keep working with both Boeing and Airbus but believe this order strengthens their relationship with Boeing.

Turkey aims to be a major hub for tourism and business, using its new airport in Istanbul. Pegasus flies from Sabiha Gokcen airport in Istanbul, which is also expanding with a new runway. This deal could lead to more production and job opportunities for Turkish companies, indicating a partnership between Turkey and Boeing. Meanwhile, Airbus remains strong in Turkey, having secured a significant order from Turkish Airlines last year.

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