Rostekhnologii backtracks on current 737 options

Moscow
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Russian state corporation Rostekhnologii has backed away from plans to place options for current Boeing 737 models and will consider a newer narrowbody type.

In 2010 Rostekhnologii's leasing subsidiary, Aviakapital-Servis, secured purchase rights for 35 more 737s - across the -700 to -900 range - in addition to a firm order covering 50 aircraft.

Aviakapital-Servis director general Roman Pakhomov says it intends to start delivering the firm part to Aeroflot in 2013, as stipulated by the agreement signed with the carrier last January.

"To finance the deal, we want to secure long-term loans under guarantees of the US [Export-Import Bank]," he says. "We've submitted an application to that end.

"After receiving their proposal over the next two months, we'll begin arranging a syndicated funding from major commercial banks."

But Aviakapital-Servis has ceased discussing the possibility of exercising options for more 737s. "We've exited from those talks," says Pakhomov. "Instead, we already look at the upcoming models in this segment, namely the Boeing 737 Max and Airbus A320neo."

The lessor is interested in the most "innovative and progressive" products, indicates Pakhomov. He expects Boeing and Airbus to detail specifications of their newer narrowbodies in August, and adds: "We'll consider commercial proposals from them afterwards."