Turkish Airlines Defers Deliveries Of Boeing Aircraft

Mar. 15, 2017 8:15 PM ETThe Boeing Company (BA)13 Comments

Summary

  • Turkish Airlines has deferred a total of 17 Boeing aircraft.
  • No major changes for the Boeing 777 program.
  • Boeing 737 MAX 9 to continue as planned.

Turkey has captured headlines this weekend as it brutally clashed with the Netherlands over the Dutch government blocking a meeting of informational nature. The Netherlands blocked the meeting over fears that it would be a large-scale meeting with Dutch Turkish people to campaign in favor of extending President Erdogan's political power. The local government, in coordination with the Dutch government, ended up blocking the landing of Turkish Minister Çavuşoğlu, after which another Turkish minister made her way to the Turkish consulate in Rotterdam. She eventually was taken out of her armored car by heavily armed units and escorted to the German border. This has put a lot of pressure on relations between the two countries.

https://www.powned.tv/media/120589/turkish-airlines.jpg?anchor=center&mode=crop&quality=80&width=1024&height=576&rnd=131339936750000000

Source: PowNed | Gewoon omdat het kan

In this article, I want to have a short look at the Turkish economy and what this means for Turkish Airlines and, subsequently, Boeing (NYSE:BA).

Turkish economy

Turkey GDP

One of the first things that can be seen if we look at the GDP of Turkey is that the country's economy has grown quite a bit since 2003, which is the year that Erdogan became Prime Minister of Turkey. The GDP grew to roughly 4 times the size of what it was in 2003, but there is one major issue here. What we are seeing is that Erdogan did a top-notch job as a Prime Minister, but growth started to flatten as he became more authoritarian. After Erdogan became President in 2014, this authoritarian style continued and has affected the attractiveness of Turkey as a country to invest in for foreign companies. As a result, the economy started to shrink, and a coup attempt did not do any good to the Turkish economy either. Meanwhile, the country's debt and trade deficit increased, both of which are unhealthy for any economy in the longer term.

This article was written by

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