June 23, 2004
THY Turkish Airlines said on Wednesday it had not reached a final decision on plane purchases and was continuing talks with Boeing and Airbus.
The statement followed a story from Seattle on Tuesday quoting sources close to the transaction, who said the national carrier was set to order 16 Boeing 737-800 airliners for delivery beginning in 2005.
Trading in the airline's shares was halted on Wednesday morning pending the statement. The Istanbul Stock Exchange said trading would resume in the afternoon session starting at 1100 GMT.
"Our company has not reached a final decision in connection with plane purchases and is still continuing talks with Boeing and Airbus," THY said in a statement to the exchange.
The narrow-body jet orders would be worth nearly USD$1 billion at list prices, which are routinely discounted, and could be accompanied by additional orders from Airbus under a USD$2 billion investment package from Turkey's government, which plans to expand the airline.
Officials at Boeing and Airbus declined to comment.
State run THY, which is slated for privatization, said last month it was talking to both manufacturers amid a boom in Turkish air travel fueled by ticket price cuts and reduced taxes.
THY currently operates both Boeing and Airbus jets and plans to boost its fleet to 85 to 90 aircraft by mid-2006 from 53 in May, including about a dozen used aircraft the airline was expected to begin leasing this month.
(Reuters)
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