Russia Buys 22 Airbus Jets to Acquire Larger Stake in EADS
Russia
Vladimir Putin
Business & Finance
Sukhoi
Jet
Airport
Troika Dialog
United Aircraft Corporation (OAK)
Irkut
Airbus
EADS
Aeroflot
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Russian biggest carrier Aeroflot will acquire 22 Airbus A350 jets, said Aeroflot general director Valery Okulov. The deal (about $4 billion) is the largest purchase in Russian aviation history, according to news agencies.
The carrier also could soon sign a contract to buy 10 to 15 smaller A330s as part of a major upgrade of its fleet, Aeroflot spokeswoman Irina Dannenberg told The Associated Press.
Last year Russia’s Vneshtorbank has purchased between 4.5 percent and 4.8 percent of EADS in a $1.2 billion deal, and EADS acquired 10 percent of Irkut, the major producer of Russia’s flagship Suhkoi jets.
Now Russia is interested in acquiring a larger stake in EADS, the parent company of Airbus. French Foreign Minister Philippe Douste-Blazy told Putin that Russia should buy more Airbus-350 passenger jets.
According to Russian investment firm Troika Dialog, by buying into EADS, the Russian government forms a kind of joint enterprise between the European giant and the Russian state aviation holding, United Aircraft Corporation.
Aeroflot had signed an agreement with Boeing to purchase 22 Dreamliners, but a necessary directive from the government was never issued. Okulov said talks with Boeing were “frozen.”
The sale would be a boost at a difficult time for Airbus. It has been beset by management and financial crises, including a two-year delay to its A380 superjumbo that wiped more than $6.6 billion off profit forecasts.
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