State of the Airlines

Tuesday, September 19, 2006

Aeroflot Decides to Keep its Place in Line

A 30% Aeroflot stakeholder and seriously rich guy Alexander Lebedev decided that Aeroflot needed to keep there options open on a deal to by 22 787 from Boeing. As I posted just yesterday politics, finance and business plans are swirling at the Russian airline as they try to decide on their next major aircraft purchase. The deal on the table with Boeing is a sweet one with a reported $10 million dollar discount being offered per aircraft. Mr. Lebedev decided to step up and secure both the terms and Aeroflot's place in the delivery line before the terms of the offer expired.

Hmmm...lemme see here, 22 multiplied by $10 million per aircraft...hey, that's a pretty big chunk of change that Aeroflot just saved by making this deal now. This is a good business decision for Aeroflot. Secure the deal and the delivery slots now before the deal gets away. If Russia pressures the carrier into buying Airbus A350s in an attempt to build influence at EADS they should be able to easily sell off these aircraft even before they are delivered. Very shrewd. You will also note that Boeing is not doing their tradition happy dance normally associated with a $3 billion (with a "b", billion) aircraft deal. Another sign that this deal is anything but truly done.

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