UTair Aviation Signs Agreement with VEB-leasing for Delivery of Airbus Aircraft

UTair Aviation and VEB-leasing signed a financing deal for the delivery of 20 Airbus A320 aircraft at the Farnborough Airshow in June 2012 and on October 5, 2012, VEB-leasing made ​​the first advance payment to Airbus Group for the delivery. The list price for the supply of 20 aircraft is more than $2.3 billion.

The participation of VEB-leasing at this stage of the order will allow UTair to bring the new aircraft into its fleet in accordance with a previously approved schedule – with the delivery of the first two planes in the 2nd quarter of 2013. Deliveries are expected to be completed in November 2015.

“This type of agreement for financing is a first in the Russian aviation industry,” remarkedUTair Aviation Deputy General Director and CFO Igor Petrov. “We’re confident that the positive experience working with VEB-leasing will be reflected in future investment projects of UTair Group.”

Active cooperation between UTair and VEB-leasing begin in 2009 when the airline received delivery of four new Mil Mi-171 helicopters. In total VEB-leasing assisted the airline with more than $260 million for the delivery of 17 Mi-8AMT/Mi-171 rotorcraft and 7 Boeing 737-500/800 aircraft.