Boeing Closing In On 250-Jet Order As Trump Hosts Erdogan
A US Air Force F-35A stealth fighter jet, manufactured by Lockheed Martin Corp.
(Bloomberg) — Boeing Co. and Lockheed Martin Corp. are poised to win aircraft orders from Turkey as soon as next week for as many as 250 commercial planes and additional F-16 fighter jets, with possible resolution over a long-running F-35 dispute.
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President Donald Trump announced Friday in a social media post that he’ll host Turkish President Recep Tayyip Erdogan in Washington on Sept. 25. The two leaders would meet to discuss the possible sales while also working to resolve a logjam over F-35 stealth fighters that soured ties between the NATO allies.
The meeting is slated to occur after the annual high-level gathering of the United Nations General Assembly in New York.
“We are working on many Trade and Military Deals with the President, including the large scale purchase of Boeing aircraft, a major F-16 Deal, and a continuation of the F-35 talks, which we expect to conclude positively,” Trump said. “President Erdogan and I have always had a very good relationship.”
Boeing has hammered out the framework for a deal with Turkish Airlines that’s likely to be showcased with a state visit, said people familiar with its plans. The White House visit and upcoming bilateral talks in October are among the possible venues being discussed, said one of the people.
Boeing deferred comments to Turkish Airlines. Yahya Ustun, a Turkish Airlines spokesperson, said, “We have been discussing an order with Boeing for quite some time, but no final decision has been made yet.” A Lockheed representative didn’t immediately respond to a request for comment.
Aircraft sales continue to figure prominently in Trump’s campaign to pare the US trade deficit, a phenomenon that has propelled Boeing’s sales this year past those of Airbus SE, its European rival.
Boeing shares have risen 22% this year as of Friday’s close, compared with the S&P 500 Aerospace & Defense index’s 35% advance over the same period. Boeing was unchanged at $215.65 in postmarket trading.
The deal would be the culmination of years of negotiations with Turkish Airlines, which has publicly discussed its aims to almost double its fleet in the next decade and establish Istanbul as a global aviation hub rivaling nearby Dubai.
Turkish Chairman Ahmet Bolat said last year that the nation’s flag-carrier was in discussions with Boeing to order about 250 aircraft — most of them 737 Max jets along with 75 of the widebody 787 Dreamliner model. Airbus landed a deal for 230 jets with Turkish two years ago.