Russia's S7 Airlines could be contemplating revisiting its agreement with Airbus for 25 new A320s in view of the Moscow-based airline's financial situation.
Sources close to the matter indicate that S7 has reviewed its requirement for A320s following the global economic downturn and estimates its need at five to 10 aircraft.
Airbus' office in Moscow says the A320 agreement with S7 remains valid at this point. A spokesman for S7 declines to comment.
But Russian business newspaper Vedomosti claims the carrier has initiated talks with Airbus to amend the original agreement they signed in 2007. S7's order is for CFM International CFM56-powered A320s.
Under the deal, the European airframer is to deliver up to five A320s over the next year provided S7 makes all stipulated payments.
But the carrier has admitted lack of readily-available funds as a result of mounting financial and operational constraints. S7 last month cancelled its order for 15 Boeing 787s, although it has stayed committed to a 737-800 order.