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Yo_Mama_Been_Loggin

(107,065 posts)
Tue May 8, 2018, 08:03 PM May 2018

Two points of view on Boeing's Iran deal

Boeing could lose $20 billion in deals as Iran pact collapses

President Donald Trump announced Tuesday he will withdraw the U.S. from a nuclear pact with Iran , a move that threatens Boeing's multibillion-dollar deals to help restock the aging Iranian commercial air fleet.

The world's largest aerospace company has agreements to supply Iranian airlines with planes worth roughly $20 billion, based on list prices. The number of aircraft in the agreements is tiny compared with Boeing's total order book, however. Boeing ended the first quarter of this year with a production backlog of more than 5,800 airplanes, including more than 4,600 orders for 737s.

Shares of Boeing were down 0.3 percent in afternoon trading.

Boeing announced the largest of these deals in December 2016: 80 jets for Iran Air – including 50 of the 737 MAX 8 model. In April 2017, Iran Aseman Airlines signed an agreement to purchase 30 Boeing 737 MAX planes, with an option to buy 30 more. Both deals came after the nuclear pact that was signed in 2015.

https://www.msn.com/en-us/money/companies/boeing-could-lose-dollar20-billion-in-deals-as-iran-pact-collapses/ar-AAwY7So?li=BBnb7Kz
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Trump's Iran deal exit likely won't hurt Boeing but may help China and Russia


President Donald Trump's move to withdraw the U.S. from its Obama-era nuclear agreement with Iran and reimpose sanctions on the country won't hurt Boeing, aerospace analysts say.

That's because the Chicago-based jet maker never officially logged its tentative deals for 100 jets with three Iranian airlines as firm orders.

The deals are unlikely to ever proceed under new sanctions, but because Boeing never counted them, the situation appears to have no impact on company production plans, financial results or projections going forward.

"We will consult with the U.S. government on next steps," Boeing spokesman Gordon Johndroe emailed. "As we have throughout this process, we’ll continue to follow the U.S. government’s lead."

For Boeing and Chairman and CEO Dennis Muilenburg, the matter is more of a lost opportunity mixed with a modest loss of personal face after Muilenburg promoted the deals. Last summer, a confident Muilenburg said the Iran deals were "on track," adding Boeing expected to begin delivering jets in 2018.

Seattle-based aerospace analyst Michel Merluzeau said Boeing "was making noise about the deals, even if they didn't count them as orders."

Economic sanctions prohibited Boeing and Airbus from selling jets to Iran for almost three decades until the deal allowed them to modernize fleets.

https://www.bizjournals.com/seattle/news/2018/05/08/boeing-iran-deal-trump-withdrawal-china-russia.html?ana=e_du_prem&s=article_du&ed=2018-05-08&u=ColXVN5SPzQtLHFP87ho2w07857290&t=1525822406&j=81474041
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