Volvo Aero is set to an announce a major agreement with Russian airline company Aeroflot under which Volvo Aero will overhaul Pratt & Whitney JT9D-59A engines powering Aeroflot's Boeing DC-10-40 aircraft.
The initial value of the contract is $60 million, making it the largest overhaul contract signed by Volvo Aero since 1998 and a sign that the Swedish company's optimism about the market is not misplaced.
According to Volvo there is also potential for a total order value of $120 million if Aeroflot decides to add more DC-10-40s to its fleet.
The contract, negotiated over the last couple of months, is the first under which Volvo Aero gives a total package including such services as spare engine and LRU support, engine condition monitoring and on wing support.
Dmitry Senatorov, head of Asset Management Department, Aeroflot Ð Russian Airlines, says: "We are honored to deal with Volvo Aero and we believe that the DC-10-40F project can be very successful for both sides.
"We also believe this is the first step toward further cooperation between our two companies. The whole transaction will be mutually beneficial, not only because of the favourable conditions of the contract, but also through the well-organised work from the side of Volvo Aero as well as from Aeroflot."
Lars Sundberg, senior vice-president and general manager of Volvo Aero's Engine Services business area, says the company is pleased with the confidence shown by Aeroflot. "For Volvo Aero, this is also a very important first step into the growing and important Russian market," he says. "It is also pleasing for us that the agreement is in line with our strategy to expand within the JT9 overhaul segment."
Source: Flight Daily News
