Boeing Nears $4-Billion Deal with Russia's AirBridgeCargo

By Julie Johnsson


MOSCOW: Boeing is nearing a $ 4 billion deal with Russia's largest air-freight company that would help extend the life of the iconic, hump-nosed 747 jumbo jet amid waning demand for four-engine aircraft, people close to the transaction said.

The US planemaker is in advanced talks with AirBridge Cargo Airlines and its Moscow-based parent, Volga-Dnepr Group, to convert a year-old commitment into more than 10 firm orders for 747-8 freighters, two of the people said.

The agreement could be announced as soon as the Farnborough Airshow next month in England.

The deal would provide a crucial lifeline for the "Queen of the Skies" as Boeing tries to preserve production until the air-cargo market revives or shipping companies start to replace aging wide-body f leets.

The 747 freighter, prized for a hinged nose that allows large cargo to be loaded at the front, is Boeing's second-most expensive commercial jet, with a list price of $379.1 million. Buyers typically negotiate discounts.

Converting commitments to firm orders starts the process of allocating manufacturing resources and production slots to build the planes.

A representative of Volga-Dnepr declined to comment on the talks, but said the airline plans to take all 20 jumbos it committed to last year.

A Boeing spokesman declined to comment.