According to a Reuters report, citing Turkish Airlines Chair Ahmet Bolat, if talks with engine supplier CFM do not make any progress, the airline would switch to Airbus.
Boeing (BA) stock became the second-most trending ticker on Stocktwits after a report stated that Turkish Airlines could shift a recent order for 737 MAX jets to European counterpart Airbus.
According to a Reuters report, citing Turkish Airlines Chair Ahmet Bolat, if talks with engine supplier CFM do not make any progress, the airline would switch to Airbus. “If CFM comes to feasible economical terms then we are going to sign with Boeing,” Bolat told Reuters. He noted that even though the talks made some progress, there were disagreements on costs.
CFM International, which is a company formed through the joint venture between GE Aerospace and Safran Aircraft Engines, is the only engine supplier for Boeing’s 737 Max.
“If CFM continues its stance, we’ll change to Airbus. With Airbus, I have choices,” Bolat said, given that the European planemaker has two engine suppliers.
Retail sentiment on Boeing improved to ‘bullish’ from ‘neutral’ territory a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits. Shares of Boeing were down 3.2% in afternoon trading on Thursday.
Reuters noted that Turkish Airlines in late September had said it would order 75 Boeing 787 aircraft and had completed negotiations to buy 150 737 MAX planes, based on how engine-related discussions progress.
Earlier this week, Reuters reported that Boeing’s buyout of Spirit AeroSystems (SPR) is set for a conditional antitrust approval from the European Union. The report stated that EU approval would follow once Boeing addresses its concerns, including the sale of some of Spirit’s businesses.
Shares of Boeing have gained 23% this year and have jumped nearly 49% in the last 12 months.
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