Boeing CEO Downplays Impact of Trump Canceling Iran Licenses

Boeing CEO Downplays Impact of Trump Canceling Iran Licenses

Boeing CEO Downplays Impact of Trump Canceling Iran Licenses

Since Boeing has a large order backlog of jets, particularly for the 737 aircraft models which constitutes the bulk of Iranian deals, it will not have much impact on Boeing financials. "We'll deal with this at the European Union level with the United States". It has not delivered any airplanes and never firmly booked the orders.

The French company said in October 2017 it would have to review the project if the United States chose to impose unilateral sanctions on Tehran, given the company's assets in the us market. "As we have throughout this process, we'll continue to follow the USA government's lead", the company said.

The French firm now has a contract with Iran Air for 100 planes worth about $19 billion according to Gizmodo and, unlike Boeing, the firm has included its deals with Iran in its order book.

At list prices, those are valued at just shy of $20billion. Total trade between France and Iran hit a nine-year high last year of 3.8 billion euros.

Boeing is ahead with 221 net orders for 2018, and had delayed booking the orders from its $16.5 billion Iran contract - Iran's biggest with America since the 1979 revolution.

"That's something we'll consider on a case-by-case basis, but as an overview, I would say that the goal is to broadly enforce the sanctions", he said, adding the administration's objective was to deny Iran access to the USA financial system. "The plan that we outlined for you, the production rate that we've put in place, is not dependent on the Iranian orders". It has delivered three planes so far.

Aerospace and defense manufacturing giants Boeing (NYSE:BA) and Airbus (OTC:EADSY) are set to lose a combined $39 billion in contracts after president Donald Trump announced that the U.S. will pull out of the Iran nuclear deal.

"Under the original deal, there were waivers for commercial aircrafts, parts and services, and the existing licenses will be revoked", the Treasury secretary, Steven Mnuchin, said on Tuesday, in reference to Boeing and Airbus.

"We're carefully analysing the announcement and will be evaluating next steps consistent with our internal policies and in full compliance with sanctions and export control regulations", an Airbus spokesman said in an emailed statement. The agreement also required giving Iran the type of extensive advanced notice before inspections that many argued would give the regime adequate time to hide its illicit activity.

While the Airbus deal is not necessarily totally dead, prospects for filling it are "not great", he said.

"We will obviously do everything, in conjunction with our businesses, to protect their interests", the source said.

Airbus has 97 planes for Iran on its backlog. "The Europeans have built strong relationships with the Iranian government and were quick to enter the market upon the lifting of sanctions".

Israel has traded blows with Iranian forces in Syria since February, stirring concern that major escalation could be looming.

For now, Aboulafia said, Iran will likely be forced to fall back again on efforts to acquire newish aircraft through expensive third-party transfers from holding companies in semi-neutral countries.

The Boeing 777-9 was ordered by Iran Air.

Iran's Zagros Airlines signed a MoU in June 2017 to buy 20 Airbus A320neo and eight A330neo aircraft.

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