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UPDATE 1-Part of Turkish Airlines' 600 new aircraft order will be optional, chairman says

(Adds quotes, details)

By Ceyda Caglayan

ISTANBUL, June 5 (Reuters) - Part of the 600 new aircraft Turkish Airlines will order from Boeing and Airbus will be optional and the final order will depend on a government decision, which is expected in two months, Chairman Ahmet Bolat said on Monday.

Speaking at the International Air Transport Association (IATA) annual summit in Istanbul, Bolat also said the flag carrier will complete all the technical details of the orders, including purchasing price and engines, and await a government decision to execute the order.

Bolat reiterated that Turkish Airlines had a requirement for a total of 600 jets including 400 narrow-body Boeing 737 MAX or Airbus A320neo-family aircraft but did not provide details on how many aircraft would be ordered from either company.

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He said it had been close to a deal with one of the two large airplane manufacturers, but would postpone a decision beyond this month's Paris Airshow and make an announcement in two months due to last month's parliamentary and presidential elections in Turkey.

"The election took little longer than expected. We were very close to make a deal with one of the manufacturers. But to be fair for the other manufacturer, we are going to delay for about two months to announce our final decision," he said, adding that the announcement will made at a separate event in Istanbul.

"Of course, some of it will be optional. We are negotiating everything," he later told reporters, without elaborating.

He reiterated that the airline is looking at 200 wide-body jets, consisting of Boeing 787 or Airbus A350 and also including 25 to 30 larger Boeing 777x or Airbus A350-1000 to serve destinations like Australia non-stop.

An order for 600 jets, if confirmed, could rank as the largest in the industry's history by value, also eclipsing fast-growing Indian carriers for the record in terms of volume.

Bolat had indicated last month that THY could announce a deal with Boeing during the Istanbul event followed by a deal with Airbus at the Paris Airshow.

Airlines have been bulk-ordering planes to secure dwindling slots as travel rebounds following the pandemic. Turkish Airlines has ambitious plans to attract more traffic to its Istanbul hub, competing with European and Gulf rivals.

Bolat said on Monday Turkish Airlines is in talks with Malaysian Airlines for a code share agreement.

He also said the public offering of budget airline Anadolu Jet will not be necessary and that it will fully remain a Turkish Airlines' subsidiary. The flag carrier's first quarter results suggests that the full-year results in 2023 will similar to those in 2022, Bolat added. (Reporting by Ceyda Caglayan; Additional reporting by Tim Hepher; Writing by Ali Kucukgocmen; Editing by Susan Fenton and David Evans)