S7 confirms 787 cancellation but considers lease instead

By Tom Zaitsev

Russia's S7 Airlines has confirmed that it is the customer behind the cancelled order for 15 Boeing 787 twin-jets, but insists it retains interest in the aircraft.

The Moscow-based carrier says the contract, signed in May 2007, for delivery of the aircraft from 2014 has been terminated.

It says it is "keeping its interest" in operating the 787 and considering the possibility of taking the aircraft under a leasing scheme.

S7 states that it is holding talks with lessors, and says: "We will inform later on the results of these negotiations."

A spokesman for Boeing in Russia and the CIS states says the airframer "regrets" the cancellation, attributing it to the "poor economic situation".

But he adds that the manufacturer is "delighted" that S7 is still interested in acquiring the jets, and says it will continue to consult with the carrier.

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