Could Russia bolster Boeing's flagging sales?

A Boeing 767

Boeing, like many airliners around the world, has suffered lower than average orders due to the global recession and has been forced to cancel plane orders in an effort to save money. However, it seems closer ties between the US and Russia could see the airline company catch a temporary reprieve.

On the back of an announcement in which both countries pledged to work together to ensure Iran's nuclear programme is for peaceful purposes, American Secretary of State Hilary Clinton has said Boeing could potentially win a contract to supply planes to the Russian state-run airline.

Speaking to reporters in Moscow, Clinton said "we have reason to hope" when asked whether she had received any indication that the contract would go to Boeing.

Like Boeing, the Russian carrier Rosavia had been crippled during the recession from poor sales and high fuel prices. In order to compete against Russia's flagship carrier Aeroflot, Rosavia reported it had solicited offers from Boeing as well as Airbus for a order of 65 narrow-body planes.

Despite Secretary Clinton's optimism, Rosavia has also received offers from Russia aerospace companies, including one from Russian Technologies... which owns 51 percent of Rosavia. However, relations between the two countries have been peaking in recent months with President Obama's decision to scrap the missile shield plan in Eastern Europe, as well as plans for the two countries to reduce their nuclear arsenals and monitor Iran's ever-growing nuclear program.

It has been a tough year for Boeing that has only been buoyed by military contracts and the fact that their long delayed Boeing 787 Dreamliner will finally take to the skies. Over the past twelve months, the Chicago based firm has seen 52 orders cancelled, whilst only securing 57 new ones. As a result, Boeing has back production of airliners, making over 10,000 redundancies.

Founded in 1916 by William E. Boeing, the company is the largest global aircraft manufacturer by revenue, orders and deliveries, and the largest aerospace and defence contractor in the world.

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