Turkey’s Pegasus will keep 737s, drops plan for all-Airbus fleet

Turkish discount carrier Pegasus will hold on to its Boeing Co. 737 fleet as it looks to meet growing demand, a shift away from a previous plan to operate only Airbus SE planes from next year. 

“We were heading to a single type fleet. However, with this growth and with this size, we made our internal analysis and feasibility and decided to keep nine Boeing aircraft,” Chief Executive Officer Guliz Ozturk said in an interview. “In terms of cost, in terms of complication, it’s manageable.” 

Istanbul-based Pegasus had planned to phase out its older-generation 737 NGs by 2025 but growing travel demand, as well as delivery delays of new planes from manufacturers and the consequent surge in lease rates, prompted the carrier to push those plans back to 2029, according to Ozturk.

Pegasus expects to grow at a time when some of its larger rivals are constrained by engine issues and jet delivery delays.

Wizz Air Holdings Plc and Turkish Airlines have been forced to ground A320neo aircraft this summer due to inspections and repairs on their Pratt & Whitney engines, while Ryanair Holdings Plc has repeatedly expressed frustration over delayed deliveries of its 737 Max jets. Pegasus uses CFM International turbines on its A320neo jets that haven’t been impacted by the groundings.

Ozturk didn’t rule out a future purchase of the 737 Max as it plans to continue operating a Boeing and Airbus narrowbody fleet. The carrier, which has outstanding orders for 68 A321neo jets, previously said it was considering placing an order for new aircraft for delivery into the next decade. 

Pegasus began as an all-Boeing operator and a 737 Max order would be a shot in the arm for Boeing, which is in the midst of a spiraling safety crisis triggered by a near-catastrophic incident on an Alaska Airlines jet in January. 

Ozturk, who’s been at the carrier for nearly two decades and is one of the few women at the helm of an airline, said Boeing will need to focus on applying quality standards, doing strict checks and improving the culture.

The US planemaker announced a sweeping leadership shakeup this week, that includes Chief Executive Officer Dave Calhoun stepping down at the end of the year, and Chairman Larry Kellner also leaving.