Russia's Irkut aircraft manufacturing corporation is to sign a $1.1 billion contract in mid-May with U.S. jet engine maker Pratt & Whitney for turbofans for its MS-21 airliner, Kommersant business daily reported on Monday.
Irkut will sign the deal with Pratt & Whitney and ODK, the engine-making subsidiary of Russia's United Aircraft Corporation (UAC) on May 15 or 16. The deal may be worth over $1.1 billion at catalog prices, sources close to the companies told the paper.
Irkut initially plans to order 100 engines from the two firms with delivery due from 2016. Pratt & Whitney and ODK may also set up joint engine production in Russia, the source said.
Irkut and ODK confirmed to the paper that talks on the deal were almost concluded. Pratt & Whitney declined to comment.
The Irkut MS-21 airliner is a twin-engine jet with a capacity of 150-215 passengers, currently being designed by Irkut and the Yakovlev design bureau, part of UAC.
A model of the aircraft was presented for the first time at the Farnborough international airshow in 2010. The aircraft is designed to replace the ageing Tupolev Tu-154 and Tu-204 on medium-haul routes.
