Turkish Airlines and CFM sign MOU for more than 600 LEAP-1B engines

Turkish Airlines signs for 300+ LEAP-1B engines and new MRO facility with CFM.

What the company is saying

Turkish Airlines and CFM International are announcing a Memorandum of Understanding for the purchase of more than 300 LEAP-1B engines, including spares, to power 100 firm and 50 option Boeing 737 MAX aircraft. The company frames this as a step to support fleet growth, network expansion, and operational efficiency, emphasizing the scale of the agreement and the long-term partnership with CFM. Executives including Prof. Murat Şeker (Turkish Airlines Chairman), Mikail Akbulut (Turkish Technic CEO), Olivier Andriès (Safran CEO), and Lawrence Culp, Jr. (GE Aerospace CEO) participated, each highlighting the strategic and operational benefits. The announcement stresses the comprehensive nature of the services agreement, which covers all LEAP-1B engines in the Turkish Airlines and AJet fleets, and the establishment of a new engine maintenance, repair, and overhaul (MRO) facility. The tone is confident and forward-looking, focusing on partnership, reliability, and future capabilities. No financial terms, investment amounts, or delivery timelines are disclosed, and the company does not address the cost or expected return of these commitments.

What the data suggests

The disclosed figures confirm a large-scale operational expansion: Turkish Airlines and AJet will operate more than 600 LEAP-1B engines under this and previous agreements, with the new MoU covering over 300 engines for 100 firm and 50 option Boeing 737 MAX aircraft. Turkish Airlines currently operates 96 Boeing 737 Next Generation aircraft with CFM56-7B engines and 79 Boeing 737 MAX aircraft powered by LEAP-1B. Turkish Technic employs 11,650 staff across its facilities, underlining the operational scale. CFM has delivered more than 10,000 LEAP engines in the past decade, accumulating over 100 million flight hours, which demonstrates reliability and market penetration. The agreement includes a material services component to support a new MRO facility, but there are no disclosed figures for contract value, capital expenditure, or expected financial impact. The announcement is operationally detailed but financially opaque, with no period-over-period metrics or guidance on profitability. The narrative is built on scale and partnership, but the absence of financial data limits the ability to assess near-term or long-term shareholder value.

Analysis

The announcement is upbeat, highlighting a major MoU for over 300 engines and a new MRO facility, but most benefits are forward-looking and lack immediate financial impact. While the operational scale is well-documented (fleet size, engine count, staff), there are no disclosed figures for revenue, profit, contract value, or capex, making it impossible to assess profitability or near-term financial benefit. The MoU and service agreements are significant, but the realization of benefits (engine deliveries, MRO facility operations) will occur over several years, and no timeline or investment amount is provided. The language emphasizes partnership, growth, and operational efficiency, but these are aspirations rather than realised outcomes. The capital intensity is high, with large purchases and facility investment, but the absence of financial metrics or near-term earnings impact limits the signal. Overall, the narrative is more optimistic than the current evidence supports.

Risk flags

• ●The absence of disclosed contract values, investment amounts, or financial impact makes it impossible to assess the return on capital or the effect on Turkish Airlines' or CFM's financials. This opacity increases the risk that costs or commitments could be higher than anticipated, or that returns may not materialize as expected.
• ●The timeline for engine deliveries and MRO facility completion is undefined. Without clear milestones or schedules, there is a risk of delays, cost overruns, or slower-than-expected realization of operational benefits.
• ●The announcement is heavily forward-looking, with most benefits contingent on future deliveries, facility construction, and ongoing partnership execution. This introduces execution risk, as any disruption in supply chain, regulatory approvals, or partnership alignment could impact the outcome.
• ●The capital intensity of purchasing over 300 engines and building a new MRO facility is high. Without clarity on funding sources, payment schedules, or cost controls, there is a risk of financial strain or capital allocation inefficiency, especially if market conditions change.

Bottom line

This is a major operational announcement for Turkish Airlines and CFM International, confirming a multi-year commitment to expand the 737 MAX fleet and build a new engine maintenance facility. The scale is clear—over 300 new engines, more than 600 LEAP-1B engines in total, and a workforce of 11,650 at Turkish Technic—but the financial impact is not. No contract values, investment amounts, or delivery timelines are disclosed, leaving investors unable to gauge the profitability or capital requirements of these commitments. The involvement of senior executives from Turkish Airlines, CFM, Safran, and GE Aerospace signals institutional alignment but does not guarantee execution or returns. The most important takeaway is the operational ambition and partnership depth, but without financial transparency or clear timelines, the investment case remains incomplete. Investors should watch for future disclosures on contract value, capex, and progress milestones to better assess the risk and reward profile.

Announcement summary

Turkish Airlines and CFM International have signed a Memorandum of Understanding (MoU) for the purchase of more than 300 LEAP-1B engines, including spares, to power 100 firm and 50 option Boeing 737 MAX aircraft announced in September 23. The long-term services agreement will cover the airline’s entire LEAP-1B engine fleet, including previously ordered and delivered engines, spares, and engines associated with leased aircraft and potential options. In total, these agreements represent more than 600 LEAP-1B engines operated by Turkish Airlines and its subsidiary AJet. The MoU was signed during a ceremony in Istanbul by Prof. Murat Şeker, Chairman of the Board and the Executive Committee of Turkish Airlines, Mikail Akbulut, CEO and Board Member of Turkish Technic, and Olivier Andriès, CEO of Safran. The agreement also includes a material services agreement to support the establishment of an engine maintenance, repair, and overhaul (MRO) facility in Türkiye. Turkish Airlines currently operates a fleet of 96 Boeing 737 Next Generation aircraft with CFM56-7B engines (including AJet Fleet), as well as 79 Boeing 737 MAX aircraft powered by LEAP-1B (including AJet fleet). Prof. Murat Şeker stated that the new step with CFM will support Turkish Airlines' growing fleet, network, and operational efficiency, and strengthen the partnership with CFM through a comprehensive set of services. Mikail Akbulut commented that the agreement will enable Turkish Technic to provide comprehensive maintenance operations for the LEAP engine and that Turkish Technic will continue to invest in engine maintenance services and aircraft and component maintenance capabilities. Olivier Andriès noted that the MoU marks a new milestone in the relationship with Turkish Airlines and demonstrates a commitment to an open MRO ecosystem. Lawrence Culp, Jr., Chairman and CEO of GE Aerospace, expressed pride in partnering with Turkish Airlines and supporting the growth of its Istanbul network and engine MRO capabilities. In the 10 years since LEAP engines entered service, CFM has delivered more than 10,000 engines that have accumulated over 100 million flight hours. CFM continues to upgrade the LEAP fleet with a high-pressure turbine (HPT) durability kit and a reverse bleed system (RBS). The agreement will bolster Turkish Technic’s engine maintenance capabilities through the establishment of a new state-of-the-art facility, enabling comprehensive maintenance services. Turkish Technic employs 11,650 staff within its facilities.

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