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Turkish Announces Compensation Agreement With Engine Maker

The carrier recently secured compensation for engine issues.

A Turkish A321neo aircraft (Photo: AirlineGeeks | William Derrickson)

Turkish Airlines announced a compensation agreement with International Aero Engines (IAE) on Thursday to address disruptions caused by problems with the Pratt & Whitney PW1100G-JM engines on its Airbus A320neo and A321neo family aircraft.

For months, the airline has grappled with operational challenges due to engine issues, resulting in grounded aircraft, delays, and potential passenger inconvenience. The specifics of the compensation package remain confidential, but a spokesperson confirmed it aims to “mitigate the operational impact” caused by the engine problems.

Echoing a Growing Industry Trend

This agreement isn’t an isolated incident. In April 2024, Spirit Airlines secured a similar deal regarding the same engine model on its Airbus fleet. This trend highlights a growing industry focus on holding engine manufacturers accountable for disruptions caused by faulty equipment.

Agreement Details and Official Statement

According to a statement released on Kamuyu Aydınlatma Platformu (KAP), the Turkish Public Disclosure Platform, the agreement was reached following a decision by the airline’s Board of Directors. The statement explains that the deal aims to mitigate the impact of engine-related operational issues on A320/A321NEO aircraft equipped with PW1100G-JM engines.

The agreement involves a revision of existing purchase and maintenance agreements between Turkish and International Aero Engines, LLC (IAE). The revised terms include provisions for compensating the airline for the damages incurred due to the engine problems.

Compensation Options and Looming Groundings

Industry analysts believe the compensation could be multifaceted, potentially including financial reimbursement for additional maintenance or canceled flights. The agreement might also extend to benefits like extended engine warranties, reduced future maintenance costs for THY, or more favorable terms for future engine purchases from IAE.

The engine issues have significantly impacted Turkish’s operations. As of May 2024, roughly 20-25 narrow-body Airbus aircraft were grounded. According to Murat Şeker, Deputy General Manager of Financial Affairs at Turkish Airlines, this number is expected to rise sharply. Şeker stated, “Currently, around 20-25 of our aircraft are grounded. Our current estimate is that this will increase to around 40 by the end of the year and remain at that level for the rest of 2024 and part of 2025. It will be around 40-45 aircraft.”

Tolga Karadeniz

Author

  • Tolga Karadeniz

    Tolga is a dedicated aviation enthusiast with years of experience in the industry. From an early age, his fascination with aviation went beyond a mere passion for travel, evolving into a deliberate exploration of the complex mechanics and engineering behind aircraft. As a writer, he aims to share insights , providing readers with a view into the complex inner workings of the aviation industry.

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