Rostekhnologii prepares to seal 737 and MS-21 deals

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Russian state holding Rostekhnologii is poised to conclude definitive agreements with United Aircraft and Boeing for the supply of 100 narrowbody jets.

Speaking at an investment forum in Irkutsk, the corporation's director Sergei Chemezov said it would finalise contracts with both manufacturers during an upcoming event in Sochi shortly.

"They will cover the supply of 50 domestically-built MS-21 twinjets and an equal number of Boeing aircraft," he says. "The value of each deal is still under discussion."

Aeroflot's broadening operation is likely to be a future recipient of both MS-21s and 737s following the planned handover of six regional carriers for which Rostekhnologii is acting as a Government-assigned caretaker.

In exchange for the assets, Rostechnologii is to take an equity interest in the enlarged Aeroflot. But Chemezov says it cannot estimate the size of the stake yet as those carriers are still wholly in state hands. He adds: "We intend to complete their corporatisation before 2010 and make an objective asset evaluation in the first two months of next year."