STOCKHOLM, Sweden, Feb. 25, 2002 (PRIMEZONE) -- Volvo (Nasdaq:VOLVY):
Volvo Aero has signed an agreement with the Russian airline company Aeroflot, whereby Volvo Aero will overhaul Aeroflot's JT9D-59A engines, powering its DC 10-40 aircraft. The initial value of the contract is 60 MUSD, making it the largest overhaul contract signed by Volvo Aero since 1998. There is also a potential for a total order value of 120 MUSD if Aeroflot decides to add more DC 10-40's to its fleet.
The contract, that was unveiled at the Asian Aerospace in Singapore, has been negotiated over the last couple of months and is the first contract where Volvo Aero gives a total package of services, including e.g. spare engine and LRU support, Engine Condition Monitoring and On Wing support.
No new recruitment is anticipated as a result of the contract.
"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 favorable conditions of the contract, but also through the well- organized work from the side of Volvo Aero as well as from Aeroflot side", comments Dmitry S. Senatorov, Head of Asset Management Department, Aeroflot-Russian Airlines
"Volvo Aero has a strong favorable reputation on the market in the field of engine maintenance support. Positive reports of its business partners recording its high-quality work had some influence on our final choice. During the negotiations process Volvo Aero' s eminently qualified personnel has shown good professional skills, thorough knowledge in different aspects of aircraft maintenance services and undoubted perfect communicational skills", he adds.
"We are certainly very pleased that Aeroflot is showing its confidence in us. For Volvo Aero this is also a very important first step into the growing and important Russian market," comments Lars Sundberg, Senior Vice President and General Manager of the Engine Services business area at Volvo Aero.
"It is also pleasing for us that the agreement is in line with our strategy to expand within the JT9 overhaul segment", he adds.
For Volvo Aero this is the second major order on JT9D overhaul during the last six months. In October 2001, Pratt & Whitney and Volvo Aero signed an agreement on overhaul of about 25 Pratt & Whitney JT9D engines, for Boeing 747s among other aircraft. The value of that contract was estimated at about 50 MUSD.
Photos
Photos showing maintenance of JT9 and also on Lars Sundberg are available on Internet, www.volvo.com. Look for the red news file, "Images", "Aero" and "Engine Services" and/or "Management".
Facts on Aeroflot:
The Russian national carrier has 93 aircraft in service. The company operates international and domestic services to 139 destinations in 70 countries. The airline is the country's largest cargo carrier and accounts for over 70% of Russia's international air traffic. Aeroflot is ranked 56th largest airline in the world by revenue (source: Airline Business Rankings 2000).
Turnover (million): 1,373.0 USD (2000) Net profit (million): 8.6 USD (2000) Passengers (million): 5.1 (2000) Employees: 15,352 (2000). (Source: ATI)
Facts on Volvo Aero:
Volvo Aero offers an extensive range of products, including overhaul and repair of aircraft engines, sales of spare parts for aircraft engines and aircraft, sales and leasing of aircraft engines and aircraft.
The company also develops and produces components for aircraft and rocket engines with a high technology content in cooperation with the world's leading aerospace companies.
Turnover (billion) 1.18 USD (2001). Net profit (million) 65 USD (2001). Employees: 4, 035 (2001).
The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications and aircraft engine components. The Group also provides complete solution for financing and service. The Group has about 71,000 employees, production in 25 countries and operations are carried out in more than 185 markets. Annual sales of the Volvo Group amount to nearly SEK 180 billion.
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