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Turkish Aerospace Subsidiary TEI Wins $2.95B Engine Production Contract

TAI’s subsidiary TEI secured a $2.95B export deal for engine production and maintenance across 22 aviation programs, elevating its backlog to $8.2B.

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This article is based on official announcements from the Turkish Defense Industry Agency (SSB) and Turkish Aerospace Industries.

Turkish Aerospace Subsidiary TEI Secures $2.95 Billion Engine Production Order

Turkish Aerospace Industries (TAI) has started 2026 with a significant milestone, announcing that its engine manufacturing subsidiary, TUSAS Engine Industries (TEI), has secured a massive $2.95 billion export order. The agreement, revealed on Friday by the Turkish Defense Industry Agency (SSB), covers high-value engine production technologies and maintenance services for an international client.

According to the official statement from SSB President Haluk Görgün, the deal encompasses 22 different engine programs serving both civil and Military-Aircraft sectors. This contract marks the first major export success for the Turkish defense industry in 2026 and propels TEI’s total order backlog to a record $8.2 billion.

The announcement underscores Turkey’s growing influence in the global aerospace supply chain, shifting from a purchaser of technology to a critical manufacturing hub for advanced aviation components.

Deal Scope and Financial Impact

The $2.95 billion agreement is one of the largest single export Orders in TEI’s history. While the specific customer was not named in the initial public release, the scope of work is extensive. Officials confirmed that the contract includes the production of high-tech engine parts as well as MRO services.

Deliveries and services under this new contract are scheduled to commence in 2026. The infusion of this order significantly strengthens TEI’s financial outlook, bringing its total confirmed order volume to $8.2 billion. This backlog ensures sustained production activity and highlights the company’s capacity to handle large-scale, long-term international commitments.

In a statement regarding the deal, SSB President Haluk Görgün emphasized the strategic importance of the contract:

“While 2025 ended with record-breaking achievements, TEI has achieved its first major export success of 2026. The $2.95 billion order won from abroad is a strong confirmation that Türkiye is among the world’s leading centers in high value-added engine production technologies.”

Haluk Görgün, President of the Turkish Defense Industry Agency (SSB)

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Strategic Expansion of Turkish Aviation

This agreement aligns with Turkey’s broader strategy to treat defense and aviation as a “holistic ecosystem.” By integrating deeply into global supply chains while simultaneously developing indigenous platforms, Turkish companies are aiming to secure long-term sustainability.

Dr. Mehmet DemiroÄŸlu, General Manager of TAI, noted that the deal validates the engineering competence and production discipline established at TEI over the last four decades. The company, which was established in 1985, has evolved into a Manufacturing powerhouse capable of producing over 1,500 different parts for 50 distinct engine programs.

DemiroÄŸlu expressed optimism for the year ahead, stating:

“The $2.95 billion export success… confirms our quality and capabilities in engine production. This good start has reinforced our belief that 2026 will be a year full of breakthroughs.”

Dr. Mehmet DemiroÄŸlu, General Manager of TAI

AirPro News Analysis

The GE Aerospace Connection

While the official announcement refers to an unnamed “international client,” AirPro News notes that TEI’s corporate structure provides strong context for this order. TEI is a joint venture between Turkish Aerospace Industries (50.5%), GE Aerospace (46.2%), and other Turkish foundations. TEI is already the largest supplier of structural parts for several GE engines globally.

The mention of “22 distinct engine programs” and a mix of civil and military applications strongly suggests a renewal or expansion of agreements related to major global platforms. TEI is a critical supplier for the LEAP engine (powering the Boeing 737 MAX and Airbus A320neo), the GEnx (Boeing 787), and the F110 engine (F-16 fighter jets). Given the current global strain on aviation supply chains and the desperate need for increased engine production rates, a $3 billion commitment likely represents a long-term lock-in of manufacturing capacity for these high-demand programs.

Frequently Asked Questions

Who is the customer for this $2.95 billion order?
The official announcement did not name the specific client, referring only to an “international” source. However, given TEI’s joint venture status, the order is likely linked to major global OEMs such as GE Aerospace.

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What does the contract cover?
The contract covers the production of high-value engine parts and MRO (Maintenance, Repair, and Overhaul) services across 22 different civil and military engine programs.

When will production begin?
Deliveries and services associated with this new order are scheduled to begin in 2026.

What is TEI’s total backlog?
With the addition of this $2.95 billion deal, TEI’s total order backlog has reached $8.2 billion.

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Photo Credit: AA Photos

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MRO & Manufacturing

Boeing and Union Pause Contract Talks for Wichita Spirit Employees

Boeing and SPEEA pause contract negotiations for 1,600 Wichita Spirit AeroSystems staff until January 2026 amid complex reintegration logistics.

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Boeing and Union Pause Contract Talks for Former Spirit AeroSystems Staff

Negotiations between The Boeing Company and the union representing approximately 1,600 white-collar workers at the newly re-acquired Spirit AeroSystems facility in Wichita have been halted until the new year. According to reporting by Reuters, labor officials confirmed on Wednesday that talks are paused until January 5, 2026.

The pause involves the Wichita Technical and Professional Unit (WTPU), represented by the Society of Professional Engineering Employees in Aerospace (SPEEA). These negotiations are critical as Boeing works to integrate the workforce following its official $8.3 billion acquisition of Spirit AeroSystems, which closed on December 8, 2025.

Negotiation Timeline and Union Frustration

The decision to suspend talks comes just weeks before the current contract is set to expire on January 31, 2026. Reports indicate that Boeing requested the delay to manage the complex logistics of reintegrating Spirit’s operations into the wider Boeing enterprise. The company cited “complications related to the reunification” as the primary driver for the pause.

While SPEEA agreed to the schedule change, union leadership expressed significant dissatisfaction with the delay. SPEEA negotiator Wes Gardner voiced strong criticism regarding the company’s preparedness.

“I’m incredibly pissed off by this demonstrated lack of respect.”

, Wes Gardner, SPEEA Negotiator (via SPEEA/Reuters)

The union contends that Boeing had months to prepare for the Acquisitions and should have been ready to proceed with these critical discussions without interruption.

Context: The “Reunification” of Spirit AeroSystems

The backdrop of these negotiations is Boeing’s strategic move to re-acquire Spirit AeroSystems, a company it spun off in 2005. The acquisition is part of a broader effort by the planemaker to regain direct control over the quality of its fuselage production following a series of Manufacturing issues, including the January 2024 door plug incident.

The integration process brings approximately 15,000 former Spirit employees back under the Boeing umbrella. This massive logistical undertaking requires harmonizing different payroll systems, benefit structures, and union agreements. The WTPU represents non-engineering professionals, such as supply chain specialists, planners, and technical analysts, who are now seeking parity with their Boeing counterparts.

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Precedent Set by Engineering Unit

The current friction contrasts with the recent success of the Wichita Engineering Unit (WEU), another group represented by SPEEA. In November 2025, the WEU ratified a four-year agreement that included a 23% wage increase, guaranteed bonuses, and improved retirement benefits. This deal serves as a significant benchmark for the WTPU, which is reportedly seeking similar gains, including:

  • A one-time salary adjustment to recognize the return to Original Equipment Manufacturer (OEM) status.
  • Transition to Boeing’s corporate health benefits to lower monthly premiums.
  • Enhanced 401(k) matching contributions.

AirPro News Analysis

The pause in negotiations highlights the friction inherent in reversing a two-decade-old corporate spinoff. While Boeing’s request for time to manage “reunification” logistics is operationally plausible, the timing creates a high-pressure scenario. With the contract expiration looming on January 31, the window for negotiation has narrowed significantly.

We observe that the union possesses considerable leverage. The successful ratification of the engineering contract sets a clear floor for the WTPU’s expectations. Furthermore, the narrative of “reunification” empowers the union to demand immediate parity with legacy Boeing employees. If a deal is not reached by the end of January, the resulting labor unrest could threaten the stability of 737 fuselage production just as Boeing attempts to stabilize its Supply-Chain.

Sources

  • This article summarizes reporting by Reuters and Dan Catchpole.

Photo Credit: Fernando Salazar

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MRO & Manufacturing

Ethiopian Airlines Completes Africa’s First A350-900 Full Strip and Paint

Ethiopian Airlines completes Africa’s first full strip-and-paint program on Airbus A350-900, enhancing in-house MRO capabilities and regional aviation services.

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This article is based on an official press release from Ethiopian Airlines.

Ethiopian Airlines Completes Africa’s First A350-900 Full Strip and Paint

Ethiopian Airlines has announced a significant advancement in its Maintenance, Repair, and Overhaul (MRO) capabilities, successfully completing a full strip-and-paint program for two of its Airbus A350-900 Commercial-Aircraft. According to the airline’s official statement, this operation marks the first time such a complex maintenance procedure has been performed on the A350-900 model within Africa.

The project was executed at Ethiopian MRO’s facility in Addis Ababa, which has been expanding its capacity to handle modern, composite-heavy wide-body aircraft. By bringing this capability in-house, the Airlines aims to reduce reliance on foreign maintenance providers and assert its position as a leading aviation service provider on the continent.

A Milestone for African Aviation MRO

The completion of this program represents a technical breakthrough for the region. Historically, African carriers operating the Airbus A350, a next-generation aircraft constructed primarily of advanced materials, have had to send their fleets to Europe or the Middle East for full exterior repainting. Ethiopian Airlines stated that this achievement allows them to offer these specialized services not only for their own fleet but potentially for third-party customers as well.

Mesfin Tasew, Group CEO of Ethiopian Airlines, highlighted the strategic importance of this development in the company’s press release:

“The successful execution of our full strip-and-paint project on two of our A350-900 aircraft… marks a significant step forward in Ethiopian’s in-house widebody advanced composite structure paint capabilities. This project is yet another milestone which reflects Ethiopian’s ongoing commitment to investing in world-class MRO capabilities… enhancing our self-reliance, and elevating our global standing.”

This capability builds upon the MRO division’s previous experience with the Boeing 787 Dreamliner, another aircraft that utilizes extensive composite materials, further solidifying the facility’s expertise in next-generation airframe maintenance.

Technical Complexity of Composite Painting

AirPro News Analysis

While the press release focuses on the strategic achievement, it is important to understand the technical complexity involved in stripping and painting modern aircraft like the Airbus A350. Unlike older aluminum aircraft, which can be stripped using aggressive chemical solvents or mechanical sanding, the A350’s fuselage is made largely of Carbon Fiber Reinforced Plastic (CFRP).

Standard paint removal methods pose a high risk to composites. Aggressive chemicals can damage the resin matrix that binds the carbon fibers, while improper sanding can cut into the fibers themselves or damage the delicate copper mesh embedded in the fuselage for lightning strike protection. Consequently, this process requires:

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  • Specialized Solvents: The use of peroxide-based or other composite-safe strippers that lift paint without attacking the substrate.
  • Precision Application: Advanced electrostatic or High-Volume Low-Pressure (HVLP) spraying systems to ensure a lightweight, even coat that maintains the aircraft’s aerodynamic efficiency.

By mastering these sensitive processes, Ethiopian MRO has demonstrated a level of technical maturity that rivals established MRO centers in Europe and Asia.

Strategic and Economic Implications

The ability to perform full strip-and-paint operations in Addis Ababa offers immediate economic benefits to the airline. In-house maintenance eliminates the costs associated with “ferry flights”, flying empty aircraft to foreign maintenance bases, and reduces the airline’s exposure to foreign currency fluctuations.

Furthermore, this capability enhances asset utilization. By integrating painting into scheduled heavy maintenance checks (such as C-checks), the airline can minimize the time an aircraft is out of service. This efficiency is critical for maintaining profitability in a competitive long-haul market.

From a regional perspective, this development places Ethiopian Airlines at a distinct advantage over competitors such as EgyptAir Maintenance & Engineering and South African Airways Technical. While other regional players possess significant MRO infrastructure, Ethiopian’s public confirmation of a completed A350-900 full strip-and-paint program signals a lead in specific next-generation composite capabilities.

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Photo Credit: Ethiopian Airlines

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MRO & Manufacturing

Asian Aerospace Starts P243M Expansion in Clark Freeport Zone

Asian Aerospace Corporation begins a P243.2M expansion in Clark Freeport Zone focusing on MRO consolidation and aviation safety services.

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This article summarizes reporting by the Daily Tribune, Manila Standard, and PortCalls Asia.

Asian Aerospace Launches P243M Expansion in Clark Freeport Zone

Asian Aerospace Corporation (AAC), a prominent player in the Philippine aviation sector, has officially commenced a significant expansion of its operations within the Clark Freeport Zone. According to reporting by the Daily Tribune, the P243.2 million (approximately USD 4.2 million) project is currently “in full swing” following a lease agreement signed in mid-December 2025.

The expansion centers on the construction of a new 1,848-square-meter facility designed to consolidate the company’s MRO capabilities. As noted in coverage by PortCalls Asia, this development aligns with the Clark International Airport Corporation’s (CIAC) broader strategy to establish the region as a global civil aviation and logistics hub.

Consolidating MRO and Factory Services

The new infrastructure will function as a multi-purpose “Aviation Safety Hub” and “Aircraft Factory Service Center.” According to details shared by the Manila Standard, the facility is designed to centralize maintenance operations for business jets and helicopters while providing specialized support for avionics and environmental control systems.

AAC has operated within Clark since 2002. This latest investment reinforces its long-standing presence in the zone. The company currently manages a fleet that includes Gulfstream and Pilatus aircraft, as well as MD Helicopters. The new facility will allow AAC to service these assets more efficiently while offering authorized service center capabilities for major global aircraft manufacturers.

Critical Safety Infrastructure

Beyond commercial MRO services, the expansion supports vital national safety mandates. AAC CEO Peter Rodriguez emphasized the company’s role in maintaining navigation systems across the archipelago. According to the Daily Tribune, AAC is responsible for calibrating equipment at 87 airports throughout the Philippines.

“Asian Aerospace has been calibrating 87 airports across the Philippines for the past four administrations. Without calibration, aerodromes cannot operate safely.”

, Peter Rodriguez, CEO of Asian Aerospace Corp. (via Daily Tribune)

Economic Impact and Workforce Development

The project is expected to generate high-value employment opportunities in the region. SunStar reports that the facility will require a specialized workforce, including aviation engineers, safety personnel, and avionics technicians. This aligns with recent trends in the Clark Aviation Capital district, where investments have reportedly created hundreds of jobs in the logistics and aviation sectors.

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During the signing ceremony, Clark Development Corporation (CDC) President and CEO Atty. Agnes VST Devanadera highlighted the critical nature of the work AAC performs.

“Proper maintenance of aircraft components saves lives, and that is why Asian Aerospace is important not only to Clark, but to the Philippines and the world.”

, Atty. Agnes VST Devanadera, President & CEO of CDC (via Manila Standard)

AirPro News Analysis

The expansion of Asian Aerospace Corporation highlights the growing maturity of the Clark Freeport Zone as a specialized aviation cluster. While the P243 million investment is modest compared to heavy infrastructure projects, its focus on technical MRO and calibration services fills a critical niche in the Philippine aviation ecosystem. By localizing high-level maintenance and calibration capabilities, the Philippines reduces reliance on foreign service providers for essential safety operations. This move also signals confidence in the CIAC’s “Aviation Capital” roadmap, suggesting that private sector players are seeing viable long-term returns in establishing permanent technical bases in Pampanga.

Sources

Sources: Daily Tribune, Manila Standard, PortCalls Asia, SunStar, Inquirer

Photo Credit: Clark Development Corporation

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