Cheney may have shot down Aeroflot deal
Published 9:00 pm Monday, May 8, 2006
Vice President Dick Cheney took Russia to the woodshed last week, beating up the Putin government for backsliding on its commitment to democratic values and blackmailing neighbors who rely on it for energy.
Boeing may feel the sting, according to reports out of Russia, which say that the Putin government has decided to intervene on Aeroflot’s decision between ordering 22 787s or A350s.
Aeroflot deputy chief executive Lev Koshlyakov told Bloomberg News that “the decision will be political, at the will of the main shareholder, the state.” http://www.iht.com/articles/2006/05/08/business/aeroflot.php And it’s clear the main shareholder is not happy with the United States.
Key Quote: “Russian newspapers, including Kommersant, warned late last week of a new Cold War after Vice President Dick Cheney accused Russia of trying to intimidate of ‘blackmail’ countries that relied on it for oil and gas.”
The Aeroflot deal once seemed in the bag for Boeing. The 787 has been trouncing the A350 all over the planet, and early indicators were that Aeroflot was ready to jump on the Dreamliner bandwagon with an order in March.
But the decision was inexplicably delayed. The reason, it now seems, was political, United Press International reports. http://news.monstersandcritics.com/business/article_1162166.php/Aeroflot_picks_Airbus_over_Boeing
Key Quote: “A source in the Kremlin told MosNews that … Moscow has been irritated at the United States` position on Russia’s accession to the World Trade Organization.”
The U.S. is the only world power that has not publicly endorsed Russia’s inclusion in the WTO.
If Aeroflot does opt for Airbus, the implications go beyond the $2.5 billion check the Russians while write to one company or the other, Reuters notes, given the reports of turmoil in Toulouse over whether to scrap the A350 in favor of an all-new design. http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-05-08T224442Z_01_NOOTR_RTRJONC_0_India-248275-1.xml&archived=False
Key Quote: “Aeroflot told Reuters on Saturday that it had made no final decision on the deal, which would help France-based Airbus at a critical time for its A350. … Calls for Airbus to widen the fuselage of the A350 would mean an all-new design and likely delay its debut, which is now set for 2010.”
