Russia's S7 Airlines struck a deal with US planemaker Boeing on Thursday to purchase 10 of the Chicago-based company's 737-800 long-range aircraft, Russian news agencies reported. The planes' market price stands at 705 million dollars, Interfax said, and the delivery cycle for the aircraft is to begin in 2010. The contract also includes an option for the purchase of 10 additional planes, the news agency reported, according to dpa. S7, formerly known as Sibir Airlines, said the Boeings would become part of a soon-to-be-created charter subsidiary. With 25 per cent of the company's business coming from charter flights, commercial director Yevgeny Klyucharev told Interfax a separate subsidiary, S7 Charter, would be created by year's end. The deal came as good news for Boeing, which lost a bid to equip Russia's flag carrier, Aeroflot, with over 20 jets to competitor Airbus earlier this year. The government, which owns a stake in Airbus parent EADS, had refused to sign off on the Boeing deal. Founded in 1992, Sibir is Russia's second-largest airline and one of the world's 50-biggest airlines, making 40,000 flights in 2006, according to the company's web site. -- SPA
