S7 says banks 'queuing up' to finance Boeing 787-8 orders

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Russian carrier expects airliner to 'revolutionise the economics of our operations'

S7 (Sibir) is confident it will be able to raise the funds it needs to support its planned purchase of 15 Boeing 787-8s. Last week the airline became the first Russian customer for the widebody twinjet.

Russia's second-largest carrier signed a deal worth $2.4 billion at list prices, which includes purchase rights on an additional 10 aircraft. The first seven 787s will be delivered in 2014. S7 is yet to raise capital for its 787 purchase, "but banks are queuing up to support airlines purchasing the Dreamliner", says S7 general director Vladislav Filyev.

Marlin Dailey, Boeing vice-president sales for Europe, Middle East and Russia, says banks are "seeking every opportunity to fund acquisitions of 787s. The Russian air travel market has been growing fast, developing in a favourable way [for financiers]. S7 is one of the recognised stars of this market. The financing will be available."

He adds that a firm order S7 placed a month ago for 10 737-800s "means that Boeing is selected by S7 as preferred supplier, with its products taking a central place in the S7 fleet renewal strategy".

 
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The first seven of an order for 15 Boeing 787-8s are scheduled to be delivered to S7 in 2014

Filyev expects the 787 to "revolutionise the economics of our operations, both on international and domestic flight sectors". S7 has yet to choose an engine supplier. .

Dailey says Boeing is discussing a potential order from Russian flag carrier Aeroflot for 22 787s. "We continue negotiations with Aeroflot but, unfortunately, the terms we offered them one-and-a-half years ago are no longer valid due to the market changes and tremendous demand for 787s from airlines around the globe. The demand runs much higher our ability to build aircraft," he adds.