Aeroflot has postponed indefinitely its decision on a USD$3 billion order for 22 long-haul aircraft which was being competed for by Boeing and Airbus.
Boeing's new 787 Dreamliner aircraft has been seen by analysts as the front runner for the Aeroflot order, with a firm order book of 377 planes and production set to come on stream in 2008, while Airbus is still in the early design stage of its USD$10 billion project to develop its rival A350.
"The date of the new board meeting is not set yet. The final decision is being put off," Aeroflot's Deputy Director General Lev Koshlyakov said.
Koshlyakov gave no reason for the delayed decision.
Russian media have speculated that the final decision is up in the air because the state -- the majority shareholder in Aeroflot -- is itself uncertain as to what kind of planes to choose.
While business logic argued for Boeing, politics complicate the decision as Russia conducts delicate bilateral talks with the United States that could pave the way for it to join the World Trade Organization.
Meanwhile a Russian state bank has just bought a 5 percent stake in Airbus owner EADS with the Kremlin eager for a strategic holding and say in running the European aerospace group.
Time is becoming an especially sensitive issue as Russian President Vladimir Putin prepares to take part in a Franco-German-Russian summit in Paris on September 23.
EADS politely rebuffed on Thursday statements from Moscow that it was interested in taking a blocking minority stake in it. The EADS issue however is expected to be high on the Paris summit's agenda.
A senior Aeroflot executive said this week the Russian airline might double its 22 plane order and possibly split it between the competing bidders.
That, say analysts, would enable Aeroflot to reinforce its 90 plane fleet with Boeings and get involved in a strategic partnership with Airbus to expand its fleet at a later date.
But a political decision in which Aeroflot hedges its bets would come at a price -- the airline would have to bear the extra costs of servicing and maintaining two different models of long-haul airliner.
