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. Last Updated: 07/27/2016

Boeing Inks $1.4Bln Volga-Dnepr Deal

Itar-TassVolga-Dnepr president Alexei Isaikin showing a model to Sergei Kravchenko, far left, and Scott Carson on Monday.
Boeing, the world's second-largest maker of commercial aircraft, signed a contract to deliver as many as 10 of its 747 jets to Volga-Dnepr, a Russian cargo carrier whose customers range from NATO to rock stars.

Volga-Dnepr agreed to buy five 747-8 cargo craft with an option for five more, the companies said in a statement prior to a news conference on Monday, without disclosing the terms. The catalog value of the 747-8 is about $280 million, suggesting that the contract is worth at least $1.4 billion. Boeing-Russia president Sergei Kravchenko also attended the signing of the deal.

Boeing agreed to deliver the first of the cargo jets by February 2010 and the other four by 2013. Volga-Dnepr has until 2015 to exercise its option on the other five aircraft.

Volga-Dnepr is the global leader in oversized cargo, with more than 50 percent of the market. The United Nations uses its big-bellied An-124 airplane for peacekeeping missions and entertainers including Madonna and the band U2 use the aircraft for world tours.

Separately, Boeing's commercial airplane chief, Scott Carson, said the company was still in talks with Aeroflot on selling its new 787 passenger jet.

Aeroflot also plans to more than double its fleet of Airbus SAS 320 aircraft by mid-2010 as the carrier expands to meet growing demand and replaces older aircraft.

Aeroflot will have 27 of the A320 family of planes by the end of March and the total will rise to 56 planes by mid-2010, deputy CEO Lev Koshlyakov said Monday.