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Russia's Aeroflot to choose Airbus planes over Boeing
AFP ^ | Sat May 6 | AFP

Posted on 05/06/2006 1:20:07 PM PDT by Icelander

MOSCOW (AFP) - Russian flagship airline Aeroflot is to buy planes from Europe's Airbus instead of US-based Boeing, in apparent retaliation for US opposition to Moscow joining the World Trade Organisation (WTO).

"This is a clear signal to the United States not to put too much pressure on Russia in WTO talks otherwise many lucrative contracts and privileges could go to the Europeans," Yaroslav Lissovolik -- an analyst from the Deutsche UFG investment house -- told Saturday's edition of the Vedomosti business newspaper.

In December 2005, Vedomosti had said Aeroflot was considering buying 22 Boeing 787s, known as "Dreamliners".

But on Saturday it reported an anonymous official in Russia's presidential administration as saying that Aeroflot's board of directors had last month "decided that Aeroflot should buy the Airbus-350 liners".

Vedomosti estimated the cost of an Airbus deal at three billion dollars (2.36 billion euros).

But Aeroflot said it was too early to talk about the results of the tender since no contract had been signed.

"The results of the tender will be announced when we sign the contract. We haven't done that yet," airline spokeswoman Irina Dannenberg said.

"For some time, Boeing was preferred. Now we are looking at offers from Airbus. We haven't chosen the planes yet," she added.

Lev Koshlyakov, Aeroflot's deputy chief executive, was quoted by Interfax news agency on Saturday as saying: "The main shareholder -- the state -- has the last word and there has been no instruction from the state to the company."

The Russian government holds a 51-percent stake in Aeroflot.

Vedomosti said Aeroflot had delayed announcing its decision after an Airbus A320 passenger jet belonging to Armenia's Armavia airline plunged into the Black Sea on Wednesday, killing all 113 people on board.

Moscow has already signed a bilateral agreement with the European Union to pave the way for it to join the WTO but it has yet to clinch such an agreement with the United States.

Washington has expressed concern over software, music and video piracy in Russia, as well as agricultural subsidies, import tariffs and rules on the establishment of foreign banks.


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Russia
KEYWORDS: airlines; evilempire
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1 posted on 05/06/2006 1:20:10 PM PDT by Icelander
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To: Icelander

Sadly, this would be consistant with a larger trend.


2 posted on 05/06/2006 1:21:44 PM PDT by gondramB (He who angers you, in part, controls you. But he may not enjoy what the rest of you does about it.)
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To: Icelander
An Air France Airbus burns after overshooting the runway while landing at Toronto's Pearson International Airport in a storm August 2, 2005.

3 posted on 05/06/2006 1:21:55 PM PDT by Icelander (Legal Resident Since 2004)
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To: Icelander

The Boeing-Airbus rivalry continues...


4 posted on 05/06/2006 1:25:27 PM PDT by cardinal4 (Kerry-Mcarthy in 2008!)
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To: gondramB

Nothing to worry about. Russia will end up buying Boeing.

Most of this is posturing, and Europe and Asia do a lot of posturing. In the end, the decision will either be made on business grounds, in which case Boeing will be selected, or political grounds, in which case Boeing will still be selected.

Nobody wants to be tied to a decision to buy Airbus for political reasons, only to have some of those planes crash and burn. If Airbus is to win the contract, they had better produce a lot of guarantees. The Boeing aircraft are still the most sound from a business vantage point.


5 posted on 05/06/2006 1:29:28 PM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: Icelander

They're pouting over what Cheney said about them.


6 posted on 05/06/2006 1:30:07 PM PDT by RoadTest (The wicked love darkness; but God's people love the Light!)
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To: Icelander
and that has what to do with airbus?

land a 777 too far down a slick runway and the same thing would happen.

7 posted on 05/06/2006 1:30:34 PM PDT by Energy Alley
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To: Icelander

The Russian's should be embarrased to be buying an airbus crashliner instead of building their own.Airbus planes have had a bad safety record in the past year.


8 posted on 05/06/2006 1:31:30 PM PDT by puppypusher
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To: Icelander

"This is a clear signal to the United States not to put too much pressure on Russia in WTO talks otherwise many lucrative contracts and privileges could go to the Europeans,"

Ha! They're the losers, not us. Which would you rather fly in - A Boeing or an Airbus?


9 posted on 05/06/2006 1:31:39 PM PDT by RoadTest (The wicked love darkness; but God's people love the Light!)
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To: RoadTest

"They're the losers, not us. Which would you rather fly in - A Boeing or an Airbus?"

Boeing here, but I'd take either one over an Ilyushin or Tupolev! /scary Soviet-era junk.


10 posted on 05/06/2006 1:42:09 PM PDT by DemforBush
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To: Energy Alley

You are wrong. The 777 would not handle the same way as an AB.


11 posted on 05/06/2006 1:44:17 PM PDT by freeplancer
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To: coconutt2000
define business vantage point... Boeing can be a very difficult supplier.

At present Boeing is out discounting Airbus and the 777 and 787 are very competitive. But when Boeing isn't discounting heavily they are usually not very competitive. Airline A1 might buy a dozen 777's today on very agreeable terms. But in a few years should they decide they need more - they can't count on Boeing to maintain their discounted pricing at that time, unless they buy options - but you can only buy options so far into the future.

If at that time Boeing is asking $200,000,000 each and offering undesirable delivery slots, you are stuck. You either end up buying planes you can't afford (which is what the majors did in the late 90's) or you end up going elsewhere and breaking down a common fleet.

With Airbus, you can pretty much count on pricing and support consistency for the life of the fleet.

A good public example is when Frontier decided to buy more 737's - the terms Boeing brought to the table in terms of pricing and delivery were not worthy of serious consideration. Boeing said take it or leave it... and guess what they did.

Boeing will swing from extreme to extreme, Airbus is pretty consistent. I will take consistency.

12 posted on 05/06/2006 1:45:46 PM PDT by Energy Alley
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To: Icelander

that had nothing to do with airbus per se..also everyone walked away from that crash


13 posted on 05/06/2006 1:47:14 PM PDT by georgia2006
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To: Icelander

Good we dont want our superior planes(Boeing)which has a much longer range used for Russian awacs.


14 posted on 05/06/2006 1:51:08 PM PDT by MARKUSPRIME
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To: freeplancer
Please explain to me how a 777 over-shooting the runway into a ravine would have behaved differently...

The issue here was not the airplane... it was the ravine and the pilot who should have gone around.

15 posted on 05/06/2006 1:52:37 PM PDT by Energy Alley
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To: coconutt2000

Aerofloat is one of the most unsafe airlines in the world (some turd world country may have them beat, but I don't know which one). It is only apporpriate that they buy the most unsafe aircraft to go with their reputation.


16 posted on 05/06/2006 3:55:14 PM PDT by Vigilanteman (crime would drop like a sprung trapdoor if we brought back good old-fashioned hangings)
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To: cardinal4

If the dems had their way Boeing would go out of business


17 posted on 05/06/2006 3:56:14 PM PDT by MaineVoter2002 (http://jednet207.tripod.com/PoliticalLinks.html)
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To: Vigilanteman

it is not the most unsafe airplane in the world. get your facts straight:
http://www.geocities.com/khlim777_my/ashowsafe1.htm#Which%20is%20the%20safest%20airplane?


18 posted on 05/06/2006 4:24:15 PM PDT by greyarea
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To: Vigilanteman
Aeroflot flying mostly Boeing aircraft on international routs.Last year i took a flight from Moscow to LA.Service,comfort and food was great(unlike most of our carriers)and their maintenance done by Boeing certified mechanics.
19 posted on 05/06/2006 5:21:02 PM PDT by QQQQ
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To: Energy Alley
land a 777 too far down a slick runway and the same thing would happen.

No Way that would happen to a 777. 777's are Magic Nothing bad will ever happen to a 777, EVER!...................:*)/kidding
20 posted on 05/06/2006 5:28:03 PM PDT by cmsgop ( Please ! For The Love of God Verizon !!! NO MORE MICHAEL McDONALD !!!)
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