Boeing Gets $3 Billion Deal With Rostech for 737 Max Jets
Boeing Co. (BA) won a commitment from Aviation Capital Services LLC for 35 737 Max jets, marking the first accord with a Russian company for the latest variation of the world’s most widely flown passenger jet.
Aviation Capital, a unit of State Corporation Russian Technologies that is known as Rostech, is an aircraft leasing company established in February 2011, and the commitment with Boeing has a value of more than $3 billion, the companies said.
Boeing’s Max will feature more fuel-efficient engines and will compete with Airbus SAS’s upgraded A320neo series after a commercial debut now scheduled for 2017. Boeing, based in Chicago, has 858 orders for the 737 Max, after dominating this year’s Farnborough Air show with the airliner.
“Russian airlines will gain an advantage on global markets and will be able to increase their activity both within the country and internationally,” the leasing company said in a release.
The companies didn’t say which of two Max models were being sold. The Rostech order will be added to Boeing’s official tally once firm. The 737 Max 8 lists for $100.5 million, and the Max 9 for $107.3 million.
Purchase rights for 35 737s were part of a 2010 agreement between Chicago-based Boeing and Rostech in which the Russian company agreed to buy 50 single-aisle planes. Plane buyers typically don’t pay catalog prices. The statement didn’t provide information about Aviation Capital’s existing fleet.
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