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. Last Updated: 07/27/2016

Flurry of Deals Seen at Paris Air Show

bloombergAn A380 flying over the Paris Air Show in june 2005. Airbus and Boeing are vying for orders from Russian carriers.
Russian companies look set to sign a series of major deals at Le Bourget Air Show in Paris, which runs Monday through Sunday, industry insiders said.

Both S7 and Aeroflot could firm up orders from European manufacturer Airbus, while Italian aeronautics giant Alenia will tie up a longstanding deal to acquire a stake in the Sukhoi SuperJet-100 project.

Barely a month after announcing a deal for 15 Boeing Dreamliner planes, S7 could ink a deal with Airbus for 20 mid-haul A320 carriers worth a catalogue price of $1.2 billion, sources close to the deal said.

S7, formerly Sibir Airlines, will conclude several deals at the show, a source inside the company said, refusing to confirm the Airbus deal.

A spokeswoman for Airbus said that the deal was being negotiated.

Yevgeny Shago, an analyst at Trust investment bank, questioned where Sibir would find the money from to fund both the Airbus and Boeing deals. The funds could come come out of the pockets of S7's majority owners, Vladislav and Natalya Filyov, Shago said.

S7 could see their deal trumped by Aeroflot, if the national flag carrier puts pen to paper on its own $3.5 billion deal for 22 A350s.

Aeroflot signed its own $3 billion deal with Boeing for 22 Dreamliner aircrafts at the St. Petersburg International Economic Forum earlier this month. Aeroflot CEO Valery Okulov said that the company was looking to sign a contract with Airbus either at Le Bourget or the Moscow Air Show in late August. The delivery of the A350 jets would run from 2014 through 2017, Okulov said.

An Airbus spokeswoman said that the deal was still being worked out.

Aeroflot's board on Friday approved plans to lease 10 Airbus A320s and five A321s. The long-expected move does not affect the A350 deal, Aeroflot spokeswoman Irina Dannenberg said.

Richard Aboulafia, an aviation analyst at the Virginia-based Teal Group, questioned the commercial logic in signing an Airbus deal so soon after firming up the Boeing order. Any deals are part of heavily politicized moves designed to increase Russia's stake in Airbus parent company European Aeronautic Defense and Space Co., he said.

Also on the table at Le Bourget is a possible deal that would see Aeroflot lease 20 Rolls Royce engines through Dutch leasing company AerCap, Aeroflot said.

In another deal, Aeroflot could seal a long-awaited deal for six Ilyushin-96-400 cargo planes with Ilyushin Finance Co, worth $70 million to $75 million each.

A spokesman for Ilyushin Finance said the deal could be signed Wednesday, adding that the company could also seal a deal for four Il-96-400s to airline Atlant-Soyuz.

He said that the company was almost certain to sign a $200 million deal with Voronezh-based Polyot for 10 short-haul passenger planes.

Italian aeronautics giant Alenia will sign an agreement Tuesday to buy a stake of 25 percent plus one share in Sukhoi Civil Aircraft, bringing to an end almost two years of negotiations, an Alenia spokeswoman confirmed Friday.