Russia's S7 Airline Orders 15 Boeing 787s

MOSCOW (AP) - Russia's biggest domestic air carrier S7 signed a deal with Boeing Co. to expand its fleet with 15 new 787 aircraft, the company said Tuesday.

Under the terms of the deal, S7 would receive the first seven planes in 2014 under an operating lease agreement, the company said in a statement. S7 also would have the right to acquire 10 more aircraft, it said.

The deal was valued at $2.4 billion, based on the catalog price for 25 787s.

The contract ''will allow us not only to retain the position of Russia's leading carrier but expand the gap between our competitors,'' said Valdislav Filyov, general Director of OAO Sibir, which controls S7.

The order is welcome news for Boeing in Russia. The U.S. plane manufacturer's efforts to reach a major deal with Aeroflot have been stymied by what some analysts say is the chill in relations between Washington and Moscow.

S7, formerly Sibir, is Russia's second-largest airline after Aeroflot though it leads the flagship carrier in terms of domestic passenger volume.