OREANDA-NEWS. July 18, 2012. UTair Aviation has received five Boeing 737-500 aircraft according to a contract with Sberbank Leasing. The total cost of the project came to USD 50 million with a lease term of 7 years. The West-Siberian branch of Sberbank underwrote the transaction.

The Boeing 737-500 is the most popular single-aisle medium-range passenger jet in the world. UTair Aviation now operates 31 planes of this type for domestic and international flights.

According to Igor Petrov, First Deputy General Director and Chief Financial Officer of UTair, the airline supports an ongoing fleet modernization program. He noted that fleet renewal enables the company to expand its route network and to compete successfully in the growing travel market. “We appreciate flexibility and efficiency of the Sberbank Leasing and hope relations established between our companies can develop further,” Petrov said.

“The company's development strategy focuses on further portfolio diversification and strategic reinforcement of competencies in the aviation segment with the support of Sberbank and the Boeing corporation,” noted Acting General Director of Sberbank Leasing Kirill Tsarev. “Today we have about fifty aircraft in our lease-fleet. Cooperation with Russian aviation industry leader UTair and our experience confirm that Sberbank Leasing is one of the most effective partners for the modernization of the fleet of the Russian Federation,” he said.

Cooperation between UTair and Sberbank Leasing began with a 2010 agreement whereby airline launched six Boeing 737-400 into operation with the support of Sberbank Leasing. At the end of 2011 UTair had received two Boeing 737-800 and five Boeing 737-500 aircraft with a total value of USD 100 million on a 5 year lease from previously signed contracts. Early in 2012 the companies reached another agreement for the development of long term and comprehensive cooperation in the field of project finance, leasing, investment banking products and operational services.

Founded in 1967, UTair Aviation is one of the largest airlines in Russia. In 2011 the company's aircraft transported 6,750,425 passengers. The airline operates more than 200 fixed wing aircraft and 300 helicopters. The airline performs flights to 61 Russian and 39 international destinations. UTair hub airports include Surgut International Airport, Roshchino International Airport in Tyumen and Vnukovo International Airport in Moscow to provide passengers with convenient connections for international flights operated by UTair and the airline's partners. UTair has been repeatedly recognized by the Federal Air Transport Agency as the most punctual Russian carrier. UTair is among the top-15 BRICS carriers in terms of capitalization. In 2012, rating agency Expert RA raised the credit rating of UTair Finance to the A+ level (very high level of creditworthiness).