Wednesday, November 30, 2016

Aeroflot to cancel 787s in 3-way deal with Boeing and Russian lessor

Russia’s largest airline, Aeroflot, plans to cancel orders for Boeing 787s and will rely instead on the Boeing 777 and Airbus A350 for long-haul flights.

The decision is expected to receive final approval at the airline’s shareholder meeting at the end of December. The rights to purchase the 22 787s will be transferred to Avia Capital Service, a leasing subsidiary of Russian government-owned industrial conglomerate Rostec, under an agreement among Aeroflot, Avia and Boeing.

Shareholder approval will allow Aeroflot to amend its 2007 contract with Boeing for the 787s.

Boeing will return Aeroflot’s advance payment of $43.7 million and receive the same amount from Avia.

Under the renewed schedule, the 787 deliveries to the lessor will be postponed by another two years. Avia is to get its first seven aircraft in 2019 followed by five each in 2020, 2021 and 2022.

The new trilateral agreement should be signed before Jan. 1, 2017, or the initial contract between Aeroflot and Boeing will be just canceled.

Aeroflot ordered 18 787-8s and four 787-9s in 2007. A Russian industry source explained to ATW’s sister publication Aviation Daily that the reason for change is that it prefers to use larger 777-300ERs for long-haul routes. It now operates 15 out of its 16 ordered 777-300ERs in a three-class, 420-seat configuration.

Aeroflot also plans to change out its aging fleet of 22 Airbus A330s with the same number of new A350s. Its order includes 14 A350-900s with a 440-seat capacity and eight smaller A350-800s.

(Maxim Pyadushkin - ATWOnline News)

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