$9.5 Billion in Iran Boeing Deals Now Dead, Airbus Worse Off
Mike Mish Shedlock
Following President Donald Trump’s scrapping of the Iran nuclear deal Tuesday and his imposition of what he called “powerful” sanctions, Boeing’s prospective sale to Iran of jets worth $9.5 billion is effectively dead for the foreseeable future.
For Boeing, it’s a lost opportunity rather than a blow to current plans.
In contrast, rival European jet maker Airbus, which won orders for 98 aircraft worth about $8.4 billion from Iran, formally added those sales to its order book and rushed to deliver the first airplanes as soon as it was legal.
A fiend with strong ties to Boeing commented:
- Boeing never booked the orders, but Airbus did- so they will hurt more.
- Airbus uses a lot of US parts ( like engines etc.) and thus subject to US sanctions. They do more business in US and elsewhere, so I expect they will comply w/ US sanctions.
- The real tragedy is the Iran aircraft in service are very old and dangerous and not maintained. Boeing is not allowed to go there and repair. They have had a lot of crashes in recent years.
Former CIA Chief Comment
Those are my sentiments exactly.
Mike "Mish" Shedlock