Multiple Partnership Agreements Announced
Airbus and Russia's
state-controlled Unified Aircraft Corp. have announced the launch
of a "risk-sharing partnership" on the A350XWB -- just one of a
series of recent partnerships between Russia and EADS.
Among the deals EADS announced Thursday includes a large jet
order, suggesting Russia's increasing favor with the Airbus parent.
Further details of the deal show EADS also offered the Russian
aerospace industry a five percent stake in building the A350XWB,
its newest widebody, according to Dow Jones' Market Watch.
Talks regarding what components will be designed and where they
would be built are still ongoing, EADS said.
Russian carrier Aeroflot also formally signed a memorandum of
understanding for 22 A350XWBs. They are expected to take delivery
between 2014 and 2017. That signature ends long-standing
speculation about where the Russian company would place its
loyalties -- and its money.
As ANN has reported, Aeroflot
originally intended to place an order with Boeing for its 787
Dreamliner, and had even placed a deposit. That order apparently
fell victim to deteriorating relations between the Kremlin and the
White House.
Russian President Vladimir Putin had accused Washington of
attempting to dominate the world. Understandably, this produced a
chill in relations between the two countries... and put pressure on
Aeroflot to cut off ties with Boeing.
The original agreement between Aeroflot and Boeing expired in
September 2006. A private shareholder group then stepped in to keep
the purchase option, reportedly worth $40 million, alive until the
end of that year, with some help from a private shareholder group.
But that deadline lapsed, as well.
In February, Boeing officials said they considered the order
"dead in the water" -- essentially handing the deal to Airbus.
EADS shares rose 1.3% in Paris afternoon trading and Boeing
shares fell 0.7%, although financial terms of the deal have yet to
be disclosed.
The deal should be welcome news for Airbus. The troubled company
has faltered in the wake of major delays in A380 production last
year. It has also weathered the departure of not one, but two CEOs
in 2006: Gustav Humbert, ousted over the "DelayGate" scandal, and
his replacement, Christian Streiff, who lasted all of 100 days at
the helm.
Power8, Airbus' restructuring program, is attempting to
streamline its operation. EADS posted a loss in the fourth quarter
of 2006 and has said it is still operating in the red. The company
is actively seeking new ways to save and obtain funds.
Russia is apparently very eager to strengthen its ties with
EADS. The state has purchased 5% to 7% of EADS shares through
state-controlled bank Vneshtorgbank. Responding to rumors the
country was planning a hostile takeover or some other such move,
Russian President Vladimir Putin attempted to appease those
concerns recently by saying his country only desired "cooperation"
with EADS.
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