Monday, 18 June, 2018

Boeing nears historic deal With Iran for about 100 jetliners

Iran is preparing to unveil a historic agreement for Boeing Co. jetliners within days that could be valued at about $25 billion.

The transaction would be the first struck by the planemaker since sanctions were lifted in January and would require U.S. government approval. An order listed at $27 billion announced by Europe’s Airbus Group SE also needs a U.S. Treasury Department license before it can be finalized. Buyers typically negotiate discounts from list prices.

Boeing is poised to land a comparable deal if the U.S. company can navigate the appropriate government permissions, Chief Executive Officer Dennis Muilenburg said in a June 3 address at the Bernstein Strategic Decisions Conference in New York.

 “You can anticipate that that’s potentially a 50-50 kind of marketplace for Boeing and Airbus, and we’re going to battle it out competitively,” Muilenburg said. Referring to Airbus’s 118-plane order, “we see market space that’s measured in that category,” he said.

Since trade barriers were lifted as part of a nuclear agreement, Iran has been on shopping spree for commercial jets. The market is a bright spot for the planemakers as economic turmoil saps demand in other regions.

Stock Climbs

Boeing’s shares rose less than 1 percent to $130.39 at 3:54 p.m. in New York, bucking declines across major indexes. The stock had declined 10 percent this year through Monday, while the S&P 500 Index gained 1.7 percent.

The planemaker has held discussions with Iranian airlines “about potential purchases of Boeing commercial passenger airplanes and services,” spokesman Tim Neale said by e-mail.

“We do not discuss details of ongoing conversations we are having with customers, and our standard practice is to let customers announce any agreements that are reached,” he said.

The work by Boeing and Airbus to re-establish Iran’s jet market goes beyond aircraft sales. Pilots and mechanics will need to be trained on modern aircraft and commercial channels opened to finance them, said Howard Rubel, a managing director at Jefferies LLC.

Boeing isn’t “declaring victory,” he said. “They’re being very understated about it. Lots of things can still go awry. But it sounds like there’s been real progress.”

Bloomberg

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1 Comment

  1. Amir

    June 16, 2021 at 4:57 pm

    One question- Why no fellow Iranians do not like to leave any comments in this website? The historic deal is done. Washington and Iran are playing the game of husband and wife who want to go to bed but have problems with ” how to deal with children ( allies)”. Boing is in. UPS and Federal Express are talking with their Iranian counterpart. So hey Iranian- ??, get on the wagon and help rebuilding the mother land ( Iran). What else do you want, Jupiter gets closer to earth…too late by then.

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