Private Investors Keep Aeroflot's Options Open

Because Aeroflot let its option to buy 22 Boeing 787 Dreamliners lapse, a private shareholder group has stepped in to keep the Boeing dream alive for the Russian airline -- at least until the end of the year.

As reported by Aero-News, Aeroflot has dithered of late, trying to figure out the best way to update its fleet of cantankerous Cold-War Ilyushins and Tupolevs. While the airline seems to be leaning towards Airbus -- especially because a Russian bank now has a 5% stake in that company -- no firm decision is expected for a while.

A source close to the National Reserve Corporation, which owns a 30 percent stake in Aeroflot, said the firm signed the deal with Boeing as a way of keeping Aeroflot's options open in case the airline's full board decides to buy the American jets, according to the Reuters News Service.

However, Aeroflot spokesman Viktor Sokolov told Reuters: "We do not have such information." Which in the byzantine world of Eastern Europe translates into a non-denial.

The original agreement between Aeroflot and Boeing expired last Friday. The purchase option, reportedly $40 million, will allow Aeroflot to keep its original place in line til the end of the year. The Boeing 787 already has a confirmed order roster of 377 aircraft which will first come off the assembly line sometime in 2008.

Rival Airbus has pitched its problematic A350 to Aeroflot. The European planemaker has yet to receive any firm orders for the redesigned plane, according to Reuters...  so Aeroflot would likely be first in line if it went with Airbus.

If the Russians do decide to get the Boeing model before the end of the year, they can also cash-in their $10 million discount coupon per plane. 

FMI: www.aeroflot.com