OREANDA-NEWS. October 06, 2010. Boeing (NYSE: BA) and the Russian Technologies State Corporation signed a definitive agreement for 50 Next-Generation 737 airplanes. The agreement includes purchase rights for an additional 35 Next-Generation 737s. The State Corporation’s Supervisory Board will review the agreement in October, which will be finalized upon Supervisory Board approval. The deal would be valued at USD 3.7 billion at average list prices.

"Corporation’s Boeing Next-Generation 737 order represents a substantial investment in our future. This agreement continues to build upon the strategic partnership between Russian Technologies and Boeing," said Sergey Chemezov, chief executive officer of Russian Technologies. "

The economic benefits and operating efficiencies consistently demonstrated by the Next-Generation 737 directly support Corporation’s plan to provide Russian airlines with efficient and reliable airplanes that will help them profitably grow their domestic and international operations.

"The selection of Boeing airplanes by Russian Technologies is another important step in our enduring partnership that includes collaboration across a broad range of industrial initiatives," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. "Corporation’s strategic vision and leadership in developing global advanced technology partnerships has played an important role in stimulating foreign investment in Russia."

Over the past 20 years Boeing's joint programs in Russia have resulted in almost USD 6 billion in highly successful global projects making Boeing Russia's largest international aerospace investor.

Sergey Chemezov said in the statement that the purchase will not only enhance commercial relations between Russia and the US, but will also help taking a step forward in making the Russian airline industry and Russian airlines more competitive on the global market. Furthermore the purchase will favour the development of Russian airline industry by using modern aircraft and further improving flight safety and services of Russian airlines.

Besides, purchase of American airplanes will balance total number of foreign aircraft delivered to Russia. It will also lead to an increase of capitalization of Russian Technologies' assets. Accumulation of lease payments on the territory of Russian Federation will prevent the export of capital in this sector.

Boeing announced in September 2010 that its production rate for the Next-Generation 737 program will increase to 38 airplanes per month in the second quarter of 2013. The popular Next-Generation 737 family has more than 2,000 unfilled orders from customers around the world.