Turkish Airlines (THY) has issued a request for proposals (RFP) for 41 aircraft and two engines, market sources indicate.
The assets include 18 Airbus A321neos, six Boeing 787-9s, 12 737 Max 8s, five 737 Max 9s and two GEnx engines.
Sources say that the total value of the RFP is around $3 billion.
The deadline for the RFP is 2 September, says a source. It is understood the airline is looking at bank and Japanese operating lease with call option (Jolco) financing.
The Turkish lira has tumbled over the past month as the Trump administration sanctioned members of president Recep Tayyip Erdogan’s government amid an escalated dispute about the release of a detained US pastor. Earlier on 21 August, the lira weakened against the dollar after Trump said he would give Turkey no concessions in return for the release of the pastor.
Despite economic uncertainty in Turkey, THY reported a $127 million net profit for the second quarter of this year, reversing a $61 million net loss in the prior-year period.
Commenting on the RFP, one banking source told Airfinance Journal: “THY is 'money good' but not sure too many bankers will ask credit or risk committees right now to approve.”
“The interest will not be as big as usual because of the situation in Turkey, but there will still be banks, especially Asian banks, that will be happy to look at it,” says another banking source.
“So it won’t be as aggressive as before but I’m sure they’ll get some appetite,” the person adds.
The source adds that THY may be able to get UKEF-financing on some of the 737 Max deliveries, as the UK export credit agency is working with Boeing to be able to finance a certain number of Boeing deliveries to airlines that may need the extra support.