06MOSCOW13003, BOEING RUSSIA: AEROFLOT 787 DEAL DEPENDS ON

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06MOSCOW13003.
Reference ID Created Released Classification Origin
06MOSCOW13003 2006-12-20 15:56 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO0168
PP RUEHAG RUEHROV
DE RUEHMO #3003 3541556
ZNY CCCCC ZZH
P 201556Z DEC 06
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5974
RHEHNSC/NSC WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE

C O N F I D E N T I A L MOSCOW 013003 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB AND EUR/RUS 
STATE PLEASE PASS USTR FOR AMB DONNELLY, DWOSKIN 
USDOC FOR 4321/ITA/MAC/EUR/RISA BROUGHER AND BEADLE 
USDOC FOR 3004/CS/ADVOCACY/BLOOM 
NSC FOR GRAHAM AND MCKIBBEN 
 
E.O. 12958: DECL: 12/20/2016 
TAGS: ECON PREL EAIR USTR RS
SUBJECT: BOEING RUSSIA: AEROFLOT 787 DEAL DEPENDS ON 
COOPERATION WITH UAC 
 
Classified By: ECON M/C Quanrud by reason 1.4(b/d). 
 
1. (SBU) According to Boeing sources, Minister of Finance 
Kudrin, Minister of Economic Development and Trade Gref, and 
Minister of Industry and Energy Khristenko agreed on December 
19 to delay the GOR's decision on Aeroflot's acquisition of 
22 wide-bodied jets until the GOR receives written proposals 
from Airbus and Boeing on potential cooperation with the 
United Aircraft Corporation (UAC).  Due to the absence of a 
GOR decision on aircraft purchase, the Dreamliner vote never 
made the Aeroflot Board's December 19 agenda. 
 
2. (SBU) Boeing plans to caucus in Seattle January 9-13 to 
decide what proposal, if any, to submit in response to the 
GOR request. Over the past three weeks, Boeing has amended 
its thinking on the 787 sale, and while Aeroflot will loose 
its 2011 delivery slots on January 1, the current contract 
will not be torn up, as was previously contemplated.  All of 
this means that lengthy contract and price renegotiations 
will therefore not be necessary in the new year. 
 
3. (SBU) Both Boeing and EADS are already working actively 
with UAC component companies.  Boeing is Sukhoi's principal 
partner on the SuperJet100, and is considering a joint 
venture on the Sukhoi SuperSonic Business Jet (a corporate 
jet that could break the sound barrier).  Boeing has hosted 
countless design engineers from Sukhoi and other UAC member 
companies as detailees in its Moscow Boeing Design Center, 
conveying significant technical and management expertise. 
 
4. (SBU) EADS owns 10% of Irkut, and is working with the 
company on A330 cargo conversions.  In its rush to bring the 
A359XWB to market without further delays, EADS is rumored to 
be ready to subcontract out up to 45% worldwide. UAC is 
looking at some of the design and manufacturing work, as EADS 
tries to control labor costs and avoid additional delays. 
Russia's state-owned Vneshtorgbank owns approximately 6% of 
EADS and sits on the UAC Board.  The press is circulating 
rumors that the GOR wants to transfer the EADS stock to UAC 
as an "insurance policy" that cooperation between the two 
companies will go well. 
 
COMMENT 
------- 
 
5. (C) Aircraft-manufacturing has become informally known as 
the "fifth national priority project" and the success of the 
United Aircraft Corporation is being increasingly cast as 
vital to Russia's national security.  The GOR is actively 
seeking foreign partners for UAC, and is apparently prepared 
to leverage Aeroflot's pending purchase of 22 wide-bodied 
jets in the effort.  With this new twist, the clear 
commercial merits of the 787 over the yet-to-be-designed 
A350XWB are losing further ground.  Independent of the firm's 
reply to the latest GOR call for cooperation, Boeing 
management has said that it will continue to grow its Moscow 
Design Center and titanium joint-venture because of their 
inherent value to the company.  As this battle ripens, EADS 
will have to decide how far it is willing to go in what looks 
to be a parasitic relationship with the emerging UAC, but, 
for UAC's part, the state controlled EADS may be a more 
attractive mate. 
RUSSELL

Wikileaks

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: