Russia yanks Boeing order
President Putin has blocked Russia's state-controlled airline Aeroflot from purchasing 22 Boeing Dreamliners in a move that appears to be more about politics than planes.
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MARK AUSTIN THOMAS: Boeing is about to lose a $3 billion order from the Russian state-controlled airline Aeroflot. President Putin has blocked the deal. He’s ordering the airline to buy Airbus planes instead. From London, Stephen Beard reports.
STEPHEN BEARD: Aeroflot had placed a preliminary order for 22 of Boeing’s forthcoming 787 Dreamliner jets, but the Kremlin now wants the airline to buy the planned Airbus A350.
This appears mainly to be about America. Relations between the U.S. and Russia have worsened. This week Putin accused the U.S. of “overstepping its borders in every way.”
What’s more, says Nick Redman of the Economist Intelligence Unit, Putin is miffed that the U.S. has not done more to clear the way for Russia’s membership of the World Trade Organization.
NICK REDMAN: The United States not yet having rewarded Russia, I don’t think Putin feels any need to reward the United States, in the form of Boeing, by giving this contract.
Boeing’s loss will be Airbus’ gain.
The European company could certainly use some help. Today the French and German leaders meet to try to restart Airbus’ stalled restructuring program. Ten thousand jobs across the company could go.
In London, this is Stephen Beard for Marketplace.