Russian lessor re-negotiates CSeries contract

IFC is the third largest customer for CSeries
IFC is the third largest customer for CSeries
Подробно об авторе:
Maxim Pyadushkin
Article, English

Russian leasing company Ilyushin Finance Co. (IFC) is in talks with the Canadian aircraft maker Bombardier on revising the terms of its CSeries aircraft order. The revised version might be announced at Paris Air Show 2015, where the new aircraft type is making its international debut.

“We are working with Bombardier’s management to reformat the contract. We will possibly finalize our agreements at the Le Bourget air show,” an IFC spokesman told Russia & CIS Observer.

IFC is the first Russian customer for the CSeries. The Russian lessor placed an order for 32 CSeries 300 aircraft with an option for 10 more in February 2013. In the summer of 2014, at Farnborough International Air Show, the company converted seven of its aircraft on option to firm orders. IFC explained its failure to publicly announce this deal by the deteriorating political situation in Russia due to the events in Ukraine.

As a results of the Ukraine-related sanctions, the Canadian authorities banned all financing of Russian companies in 2014, making the IFC deal more expensive. This was one of the reasons for IFC to review the CSeries 300 contract. The company officially confirmed such a possibility in April this year. “Indeed, we are looking into the possibility of reviewing our participation in this program because of constant delays to the delivery dates and to the launching of series production, and also due to the fact that [Canada’s export credit agency] Export Development Canada has suspended financing of Russian companies,” an IFC representative commented at the time.

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