US embassy cable - 05ANKARA4495

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