Board Meets To Discuss Options

Aeroflot, Russia's flag air carrier, will convene a meeting of its board of directors today in Moscow to discuss the purchase of new aircraft.

Aeroflot's Deputy General Director Lev Koshlyakov told Reuters "Today we are looking at 22 planes, but that does not spell the end of the program. Without doubt, Aeroflot's needs are greater."

The board will review offers from both Airbus and Boeing. The current proposal, worth $3 billion, probably won't meet all of Aeroflot's future needs. The order could be twice as nice for whichever manufacturer gets the order, because Aeroflot is thinking about doubling it.

From the outside it looks like anything is possible with this order. Koshlyakov said it was possible that Aeroflot could award the order to either bidder, or split it adding, "Today we are looking at various options. They propose one producer or two."

As ANN reported last week, Airbus is not faring well this year in the new sales competition with Boeing. This deal could go a long way toward helping Airbus keep pace... or place them even farther behind their archrival.

Koshlyakov says it's unlikely the board will make a decision today and that the question of doubling the order is not on the official agenda.

FMI: www.aeroflot.com