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Boeing could lose $20 Billion worth of aircraft sales to Airbus with Trump’s Iran move….

May 9, 2018 By jamesb

 

We’ll see how the Trump Admin handles the Boeing deal for Iran….

Cancelling it would result in a loss of tens of thousands of jobs from Boeing and would move the purchase of aircraft to Airbus , the European commercial aircraft manufacturer….Trump would be doing the Europeans a favor at American’s expense….

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

The world’s largest aerospace company has agreements to sell planes worth roughly $20 billion to Iranian airlines, 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 backlog of more than 5,800 airplanes, including more than 4,600 orders for 737s.

Boeing said it had not included the Iranian deals in its order book, so its backlog remains unchanged. Boeing’s European rival Airbus, however, has included its deals with Iranian airlines in its order book.

“Following today’s announcement, we will consult with the U.S. government on next steps,” Boeing said in a statement.

Shares of Boeing ended the day down 0.6 percent.

Trump said Tuesday he would restore sanctions on Iran. The 2015 pact lifted sanctions, after Iran agreed to limits on its nuclear program, allowing the deals with Iranian airlines to take place.

Boeing announced the largest of its deals with Iranian airlines 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.

When it announced the Iran Air deal, Boeing said such an order would support 100,000 U.S. jobs. That same month, Boeing’s rival Airbusannounced a deal to sell 100 planes to Iran Air. A list of Airbus’ orders through the end of April included more than 100 planes on order for Iran Air and Iran Aseman Airlines. Airbus did not immediately respond to a request for comment.”….

More…

Update….

Airbus is saying for now that it will NOT move to ship aircraft to Iran in lieu of the US/Trump announcement of sanctions….

image…geekwire.com

Filed Under: Government, Politics Tagged With: Airbus, American jobs, Boeing, Iran Commercial airline jet buys, Trump Iran sanctions, Updates

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