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Boeing plans to invest about U.S. $27 billion in Russia

Prime-Tass Thursday reported that U.S. aircraft manufacturer Boeing plans to invest about U.S. $27 billion in projects in Russia over the next 30 years.

Prime quoted the company’s Vice President for the Civil Aviation Marketing Department, Randy Tinset, speaking to television channel Russia Today Wednesday.

Of the total investments, Boeing plans to direct $18 billion at titanium-production related projects, $5 billion to engineering projects, with the remaining funds allocated to other projects, Tinset said.

According to channel Russia Today, on Monday, Boeing increased its forecast for the demand for aircraft from Russia and other countries of the CIS by 12.5% to 1,080 units within the next 20 years.

In monetary terms, the forecast was also boosted to $110 billion from the previous $90 billion, Boeing said at the time.

According to Tinset, Boeing is committed to buying titanium parts from Russia's VSMPO-Avisma worth 18 billion dollars alone. The move is expected to bolster Boeing’s position in the growing Russian Aviation space.

A further four billion dollars are earmarked for developing an engineering centre which Boeing founded in Moscow while another four billion are planned to be spent on other contracts with Russian companies, he added.

Airlines of Russia and other CIS countries in the next 20 years will buy more than one thousand new aircraft, three quarters of which will be used to replace the existing fleet. These figures are contained in an annual forecast of Boeing - Commercial Airplanes, Russia Today reported.

Airlines of the CIS in 2011-2030 years will need 1,080 aircraft worth $110 billion, Boeing - Commercial Airplanes Vice President Randy Tinseth told journalists at a briefing timed to the opening of the Moscow Airspace Show (MAKS).
According to Tinset, 24 percent of them are for the expansion of the fleet and 76 percent for the fleet replacement. The total number of aircraft in the CIS in 20 years will exceed 2,000, said the report.

Tinseth noted that the figures are 12 percent higher regarding the number of airplanes and 20 percent higher concerning the market value, compared with a similar forecast made by Boeing in 2010.

He further reiterated that more than 250 Boeing airliners of various modifications are currently in service in the Commonwealth countries, and their share in the aircraft fleet of CIS airlines over the past 10 years has increased from 3 to almost 30 percent.

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