Russia's IFC hopes for revised Bombardier deal at Paris Airshow

Tue Jun 2, 2015 11:00am EDT
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MOSCOW, June 2 (Reuters) - Russian leasing company Ilyushin Finance (IFC) hopes to come to an agreement with Bombardier Aerospace on revising the terms of its CSeries aircraft order at the June 15-21 Paris Airshow.

IFC signed a deal in 2013 to acquire 32 CS300 aircraft and an option for an additional 10. At the time, a firm order for 32 aircraft was valued at around $2.56 billion, and the deal was estimated at $3.42 billion should IFC buy 10 more.

"We are working on reformatting the contract with Bombardier's management. We will possibly finalise our agreements at the Le Bourget (air show)," a spokesman for IFC said.

He declined to elaborate on whether reformatting the contract meant a reduction or increase of the order.

In April, IFC told Reuters it was considering the possibility of revising the order. It cited delays in aircraft delivery and the suspension of export financing of Russian companies by Canadian agency Export Development Canada following Western sanctions over Moscow's role in the Ukraine crisis. (Reporting by Gleb Stolyarov and Allison Martell; Writing by Maria Kiselyova, editing by Elizabeth Piper and Susan Thomas)