Boeing deal with Iran was ‘never really firm’
May 9, 2018, 9:57 AM | Updated: 10:00 am
Iranian lawmakers burn two pieces of papers representing the U.S. flag and the nuclear deal as they chant slogans against the U.S. at the parliament in Tehran, Iran, Wednesday. (AP Photo)
(AP Photo)
Boeing lost out on billions when President Trump pulled out of the Iran nuclear deal. But the aerospace company wasn’t banking on the agreement with Iran anyway.
“Like Airbus, Boeing played this very conservatively,” aerospace analyst Richard Aboulafia said. “They never booked the orders, or started cutting metal, or certainly [did not deliver] planes. So I think it may have been regarded as perhaps something to hope for or aspirational, but never really firm.”
Boeing reached a deal with IranAir for 80 aircraft. The company reached a deal with Iran Aseman Airlines for 30 jets. The total list prices of the deals were approximately $20 billion — but the actual sales prices were believed to be about half that.
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The company knew President Trump had “hawkish” views on Iran. Aboulafia says Boeing read the political winds and knew it was an uncertain deal to begin with.
Production plans at Everett’s Paine Field are not affected by this because deliveries to Iran were never scheduled.
Boeing’s competitor, Airbus, signed a deal with IranAir in 2016 to sell it 100 airplanes for about $19 billion. Airbus says it will abide by the new sanctions.
President Trump announced his decision to withdraw from the Iran nuclear deal and re-impose sanctions on Tuesday. The imposed sanctions mean companies around the world must stop conduction business with Iran, or else suffer fines or other punishment.
The Associated Press reports companies, particularly in Europe, may see billions in canceled deals because of the decision.
The Iran deal was struck in 2015. Since then, European companies have primarily signed deals with Iran.
