Aeroflot-Boeing Deal on Hold

NEWS Boeing's new 787 model, Dreamliner, suffered a bit of a setback. Aeroflot, Russia's national airline, which is 51% owned by the Russian government, put its deal to get 22 Boeing 787 on hold, according to an AP article. The airline was also planning to buy an equal number of Airbus A350s, 787's competitor. Aeroflot asked its major shareholder (Russian government) to approve the deal, but the deadline has already passed, even though a Boeing spokesperson said that they were continuing. Seattle Times states, "Boeing finally wrote off the Aeroflot order 'a month or so ago,' said a Boeing insider familiar with the negotiations."

This latest development may be a result of cooling relations between Russia and the United States. Another article by AP states that Russia wants a larger stake in Airbus' parent, European Aeronautic Defense and Space Co. (EADS). Russian company Vneshtorgbank invested 5% in the company, but French and German heads of state claim that they don't Russia to have a seat on the board of directors.

Boeing's 787 is scheduled to make its first flight later this year, with deliveries starting next year. Two of three Large Cargo Freighters, or modified Boeing 747 freighters are already flightworthy. The planes will carry pieces of the Boeing 787 to Boeing's assembly plant in Seattle. Boeing touts the airplane as its most successful airplane in history with 464 orders as of February 2007. (List of 2007 orders for Boeing + List of orders for previous years)

OPINION Whenever a government gets involved in regulating something it doesn't understand, the consequences could be disastrous. Aeroflot should be a private company, more independent of its parent nation. Foreign policy could bankrupt the company. However, when was the last time Western companies ordered a Russian civilian airliner? We could discuss the reasons why: Russian airliners pollute too much, don't meet US emissions and noise standards, but there is actually more than meets the eye, in my opinion. There is a reason why nations operate local-made aircraft (among other things locally made): national pride. There is also a reason why nations don't operate other aircraft: economic discrimination based on nation of origin.