Russian flag carrier Aeroflot has concluded a preliminary agreement with Boeing for 16 Boeing 777s.

This follows a recommendation by a joint working group to explore an opportunity to expand Aeroflot's long-range fleet ahead of 2016 when the airline is due to begin receiving 22 787s.

The freshly-signed agreement is subject to approval by Aeroflot's board of directors and shareholder meeting. It reportedly envisages acquiring eight new 777-200ERs and an equal number of -300ERs.

A source in the company says Boeing has offered Aeroflot substantial discounts, which apply, apart from twin-jets, to pilot training and after-sales support.

US Eximbank is believed to be willing to provide financial backing for the deal.

Source: Air Transport Intelligence news