Turkey's Aviation Ambitions Soar With $20B Rolls-Royce, Airbus Agreement: Report

Author: Shivani Kumaresan | April 17, 2024 09:40am

Turkish Airlines is reportedly poised to ink a deal with Rolls-Royce Holdings Plc (OTC:RYCEY) (OTC: RYCEF and Airbus SE (OTC: EADSY) for local aircraft component production, estimated at $20 billion, as part of a plane acquisition plan announced last year.

A potential deal announcement is expected at an Istanbul ceremony later this month, reported Bloomberg, citing Turkish officials familiar with the matter.

Turkish Airlines solidified the purchase of 230 aircraft from Airbus in December, with further options, aiming to bolster its Istanbul hub to compete with regional giants.

This procurement included a push for local production of airplane parts. Notably, Turkish entities, including state-run TUSAS Engine Industries Inc., are expected to participate in the manufacturing program, the report noted.

The accord for domestic aircraft component production aligns with Turkey’s ambition to advance its civilian and military aviation sector. This initiative is integral to the $70 billion Airbus order in 2023.

The report further noted that Turkey has been in ongoing discussions with international firms, like Rolls-Royce, to acquire engine technology for domestic military projects.

Ankara’s government emphasizes domestic production in foreign acquisitions, extending to defense and commercial aviation sectors, reflecting a broader industrial strategy.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons

Posted In: EADSY RYCEF RYCEY