MOSCOW – S7, Russia’s second-largest airline, said it will acquire 11 more Boeing Co. airplanes and retire all Soviet models this year to cut costs as fuel prices rise.
S7 is in talks with International Lease Finance Corp., the largest lessor of planes to airlines, to add five used 767-300 models, four 737-800s and two 737-400s by January, company spokesman Kirill Alyavdin said today.
Including existing deals with Boeing and Airbus SAS, S7 will receive a total of 70 foreign craft by 2014, the company said in a statement. S7 has already received four of six Airbus craft scheduled for delivery in 2008. It received three Boeing 737-800s last month.
“S7 is the first Russian airline to decide to withdraw all Soviet planes,” Alyavdin said. “The Soviet planes use twice as much fuel as foreign planes. As fuel prices rise we can lower costs, boost margins and rein in increases in ticket prices.”
S7 is scheduled to receive the first of 25 new Airbus A320s in 2009, the first of 10 Boeing 737-800s in 2010 and the first of 15 Boeing 787 Dreamliners in 2014.