Rostec-Aeroflot Boeing Deal Worth $3.5Bln – Company

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Rostec-Aeroflot Boeing Deal Worth $3.5Bln – Company
Published 20-09-2013, 09:09
MOSCOW, September 20 (RIA Novosti) – A deal between state-owned hi-tech corporation Rostekhnologii (Russian Technologies, or Rostec) and Russian flagship carrier Aeroflot for the lease of 50 Boeing-737 Next Generation airliners is worth $3.5 billion, the corporation said Friday.

The 12-year lease deal is to be approved by Aeroflot shareholders at a general meeting on October 15. The Prime news agency reported Thursday that the contract was worth an aggregate value of $7.47 billion, citing the airline.

The price includes the option for a six-year extension of the contract, a technical maintenance reserve of $1.9 billion, leasing costs and coverage of other potential risks that may arise, Rostec said in a statement.

The contract price of $3.5 billion is $700 million lower than the price estimate given three years ago, the company added.

In August 2009, Rostec announced a tender for the supply of medium-range narrow-bodied planes for state-owned airlines. Russia's United Aircraft Corporation (UAC), Boeing and Airbus all submitted bids and Boeing was chosen as the tender winner in May 2010.

In September 2010, Rostec signed an agreement with Boeing for 50 Boeing-737 Next Generation airliners, which included an option to buy 35 more planes – an option it announced it would take up in October last year.

 

RIA Novosti

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