Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Russian Technologies Unit to Buy Boeings Worth $3.5Bln

Aircraft leasing company Aviacapital Service on Tuesday signed a $3.5 billion deal to implement its option to buy 35 Boeing-737 airliners, Interfax reported.

Aviacapital Service is a wholly-owned subsidiary of state-controlled conglomerate Russian Technologies.

"The agreement to implement the option for 35 Boeing-737 MAX airliners still requires corporate approval from Russian Technologies," Aviacapital Service CEO Roman Pakhomov said at a news conference.

Aviacapital Service does not yet have contracts for leasing the aircraft. It will work with all interested carriers in Russia and the Commonwealth of Independent States, Pakhomov said.

The first plane is to be delivered in August 2018.

Earlier, Russian Technologies also signed a contract for 50 Boeing-737s that it will supply to Aeroflot next year.

Aviacapital Service was established in 2011.

Titanium producer VSMPO-Avisma plans to increase its annual titanium product supplies to Boeing to $600 million by 2018, the companies said in a joint statement, as cited by Interfax.

On Tuesday, VSMPO-Avisma and Boeing signed a memorandum to expand cooperation by boosting the capacities of their joint venture, Ural Boeing Manufacturing.

The two companies are also continuing to work together on research and development. In particular, they are jointly creating two new alloys that could be used in the Russian aerospace industry.

Related articles: