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Aeroflot seeks compensation for SuperJet delays

18-Apr-2011

Aeroflot confirmed it is drafting compensation proposals to be presented to the company’s board and to the Russian Federal Government over delays in the delivery of Sukhoi SuperJet100 regional jets. Shares in Sukhoi parent, United Technologies, finished Friday 0.6% lower, on a generally positive day for aerospace related stocks.

Initial deliveries of the new Russia-Italian regional jet were initially scheduled as early as the end of 2008, but a number of testing and technical issues have delayed certification and delivery of the aircraft. The first went to Armavia this month.

Aeroflot has also admitted there are concerns with regard to technical specifications of aircraft compared to the purchase contracts Aeroflot has signed. Aeroflot is due to commence SSJ 100 services on 15-May-2011. The airline has firm orders for 30 SSJ 100s and options for another 15 aircraft.

Meanwhile, Lufthansa has selected B/E Aerospace for another premium seating contract. The German carrier awarded B/E Aerospace a contract to outfit its new-buy A330 aircraft and to retrofit its current fleet of A330 and A340 aircraft with B/E Aerospace's business class seating. The awards are primarily for the retrofit of Lufthansa’s existing A330 and A340 aircraft and are initially valued in excess of USD100 million. B/E Aerospace will provide Lufthansa with jointly developed and customized business class seats. Lufthansa has already awarded B/E Aerospace a contract to outfit its new B747-8 aircraft and to retrofit certain of its existing widebody aircraft with First Class suites. Shares in B/E Aerospace were up 1.7% in trading on Friday.

Selected aerospace share price movements (% change): 15-Apr-2011


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