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Boeing extends offer for Aeroflot to buy 22 new planes

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Boeing has extended an offer for Aeroflot [RTS: AFLT], allowing it to buy 22 long-haul Boeing-787 Dreamliner aircraft at 2005 prices, until early December, an insider source said Friday.
MOSCOW, November 17 (RIA Novosti) - Boeing has extended an offer for Aeroflot [RTS: AFLT], allowing it to buy 22 long-haul Boeing-787 Dreamliner aircraft at 2005 prices, until early December, an insider source said Friday.

Russia's leading air carrier is choosing between two bidders, Boeing and Airbus. Aeroflot's government-controlled board failed to reach a final decision in September. Sources close to the negotiations have said the government favors the European aviation giant's bid.

"I have talked with Boeing executives about this. Their agreement to supply Aeroflot with the aircraft on fixed prices of 18 months ago remains in force," said billionaire and lawmaker Alexander Lebedev, who co-owns the National Reserve Corporation.

The corporation holds a 30% stake in Aeroflot and coordinates the agreement between the Russian carrier and the U.S. company Boeing.

Boeing offers Aeroflot privileged prices of $15-20 million per aircraft. The new planes are to be put into operation in 2008.

Boeing representatives in Moscow said talks with Aeroflot were continuing, but recommended asking the Russian company for its comments. Aeroflot executives declined to elaborate.

Aeroflot head Valery Okulov said Russia had missed a deadline to buy 22 new Boeings in 2010-12.

"The deadline on the contract has expired. Others will take them," Okulov said on the sidelines of a Russian-Chinese investment forum earlier this month.

Okulov said Airbus had not confirmed its production plan yet.

Aeroflot's head said September 20 the company would upgrade its fleet by buying from both the U.S. and European giants.

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