Turk Hava Yollari AO, the flag carrier known as Turkish Airlines, plans to buy as many as 20 777-300ER wide-body aircraft from Boeing Co. (BA) as part of an effort to expand its transfer traffic in Europe and Asia.
The Istanbul-based carrier will buy the aircraft between 2014 and 2017, including 5 optional purchases, it said today in a statement to the Istanbul Stock Exchange. The total list price is $4.7 billion, Boeing said in a separate statement. Customers typically buy aircraft at a discount.
Turkish Airlines is stocking up on wide-body jets as it seeks to lure transfer traffic between Europe and Asia away from Air France-KLM Group (AF), Deutsche Lufthansa AG and British Airways- parent International Consolidated Airlines Group SA. Airlines in the Middle East have benefited from a geographic setting that links North American and Asian traffic.
The carrier, which has 188 planes in its fleet now, said Oct. 8 that it will buy 15 A330-300 planes from Airbus SAS. Turkish Airlines (THYAO) has 12 Boeing 777-300ER and 10 A330-300s in its fleet, according to its website. The 777 model that Turkish plans to buy typically seats about 365 passengers in a three- class layout. It boasts the world’s largest jet engine.
Turkish Airlines rose 0.5 percent to 4.05 liras at 4:23 p.m. in Istanbul. The stock has surged 77 percent this year, valuing the company at 4.87 billion liras ($2.7 billion).
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