Latest Chapter In Bizarre Saga

Even on a day that saw some discouraging news for Boeing's 787 program, as the planemaker announced a two-month delay in the plane's first flight... there was some good news, as well. Boeing and Aeroflot, Russia's flagship carrier based in Moscow, announced Wednesday they have finalized an order for 22 Boeing 787-8s.

The order was contingent upon Aeroflot shareholder approval, which was granted Tuesday. The order is valued at $3.6 billion at list prices. Aeroflot said the 787 will upgrade its existing widebody fleet, as well as provide for fleet growth to meet increased demand for air travel.

"The 787 is an excellent match for many of our requirements thanks to its efficiency, operational performance and passenger comfort. The 787 will open new market opportunities as we further modernize our fleet and expand our international reach," said Valery Okulov, Aeroflot general director.

Aeroflot did not announce an engine selection for its 787s.

The finalization of the order marks the latest chapter in the... well, bizarre tale of how Aeroflot came to order the 787. As ANN reported extensively, Aeroflot ditched the Boeing order permanently -- or so it seemed at the time -- earlier this year. Boeing officials told The Seattle Times in February they considered the order dead in the water, victim to mounting tensions between the US and Russia over foreign policy differences.

That news was followed by Aeroflot signing of a Memorandum of Understanding for 22 A350 XWBs, the Airbus competitor for the 787. Many thought the deal was lost at that point... until Aeroflot announced in June it would, after all, order an equal number of Dreamliners.

"Throughout the process we worked closely with Aeroflot to understand its requirements and to demonstrate how the 787 meets those requirements," said Craig Jones, vice president of Sales for Russia and Central Asia, Boeing Commercial Airplanes. "The 787 will reinforce Aeroflot's leadership position. It will be a tool for profitability and help Aeroflot offer an all-new passenger experience to its customers."

To date, Boeing has logged 706 orders from 48 customers for the 787 Dreamliner, which is scheduled to enter service with All Nippon Airlines in May 2008.

FMI: www.boeing.com, www.aeroflot.com