Sunday, February 1, 2009
Boeing and Russia's S7 cancellation
So S7 (formerly Sibir) the Russian airline has cancelled its orders with Boeing for the 787 Dreamliner that was originally placed in May 2007. Some analysts had expected Northwest to cancel but it turned out to be the Russians. Looking at the order backlogs one has to wonder how many of the orders for both airframe manufacturers Airbus and Boeing have financing committed? There may be more disappointments to come. Europe has something like 70 low cost carriers and in an environment like this 10 or so are likely to be profitable - the rest burning cash. Amazing how many hedge funds took stakes in LCC's in the boom times and in the absence of bank financing now find themselves with effective control. In a separate development Aeroflot took control of Malev Hungarian Airlines last week - where does that leave their bid for Czech CSA?