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Boeing signs $2 bln deal with Aeroflot to supply 22 planes -1

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U.S. aviation giant Boeing signed a $2 bln deal Saturday with Aeroflot to supply the leading Russian air carrier with 22 Boeing-787 Dreamliner aircraft.
(Recasts headline, lead, adds details, background in paras 2-16)

ST. PETERSBURG, June 9 (RIA Novosti) - U.S. aviation giant Boeing signed a $2 bln deal Saturday with Aeroflot to supply the leading Russian air carrier with 22 Boeing-787 Dreamliner aircraft.

On the second day of the St. Petersburg International Economic Forum, Boeing also signed cooperation deals with Russia's United Aircraft Building Corporation, and with civilian and military planemaker Sukhoi.

Aeroflot chose Boeing over European manufacturer Airbus, the U.S. company's rival on the global market, for deliveries of the new long-haul aircraft, to replenish its outdated fleet.

Under the agreement, the planes will be delivered between 2014 and 2016.

Experts earlier said that the airline's deal with Boeing, which the Kremlin froze in 2006 amid frosty relations with Washington, is Russia's response to Europe's refusal to allow Russia greater involvement in running the European Aeronautic Defence and Space Company (EADS), which controls Airbus.

Russia's state-controlled Vneshtorgbank bank bought about 5% stake of EADS shares for $1 billion last year.

Aeroflot's chief designer, Jim Morris, said earlier key components for the B-787 were being designed at Boeing's Moscow base, which employs 300 Russian engineers, and that Russian-supplied titanium would be used in the production.

Aeroflot chief Valery Okulov said his company would sign a contract to buy 22 Airbus aircraft this summer, at the Le Bourget air show in France June 18 through 24, or at MAKS-2007 near Moscow, which will take place on August 21 through 26.

He said the deliveries will start in late 2014. In March, Aeroflot signed a protocol of intent with the European manufacturer to buy the 22 A350 jets.

At the economic forum, Boeing also signed a deal with Russia's Sukhoi aircraft corporation to expand its participation in the Sukhoi Superjet-100 (SSJ) regional jet project to cover after-sales services and personnel training.

The SuperJet-100 project is a family of medium-range passenger aircraft developed by the Sukhoi Design Bureau in cooperation with major American and European aviation corporations, including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace, and Honeywell. Serial production is to be launched in 2008.

Sukhoi plans to produce at least 700 RRJs, and intends to sell 35% of them to North America, 25% to Europe, 10% to Latin America, and 7% to Russia and China.

Boeing also signed a long-term cooperation agreement with Russia's United Aircraft Building Corporation (UABC).

UABC, which is 90% state owned, consolidates aircraft building companies and state assets engaged in the manufacture, design and sale of military, non-military, transport and unmanned aircraft in a bid to streamline the Russian aviation industry.

The companies will set up a task force to consider opportunities for interaction in research and development, production, designing and marketing.

UABC incorporates commercial and military aircraft makers, such as Sukhoi, Ilyushin and Tupolev, as well as companies involved in distribution, including Aviaexport.

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