Boeing May Lose $20B in Orders on End of Iran Deal

Boeing May Lose $20B in Orders on End of Iran Deal

Richard Aboulafia, aviation analyst with the Teal Group, said Airbus sales to Iran are now a "legal gray area".

Reuters reports that the company's CEO, Dennis Muilenburg, made the comments at a luncheon Tuesday and added that none of the jets the Boeing planned to sell to Iran Air under a now-revoked license were in a backlog of orders the company plans to fill.

Boeing agreed in December 2016 to sell 80 aircraft, worth $17 billion at list prices, to IranAir under an agreement between Tehran and major world powers to reopen trade in exchange for curbs on Iran's nuclear activities.

The following year came an agreement with Iran Aseman Airlines for 30 narrow-body 737 MAX jets and purchase rights on an additional 30 jets.

The United States will give a six-month wind down for energy-related sanctions, including banking and shipping of energy products, and a 90-day wind down for everything else including passenger aircraft, a U.S. State Department official said on Tuesday. "As we have throughout this process, we'll continue to follow the U.S. Government's lead", Boeing Vice President Gordon Johndroe said in a statement, according to The Washington Post.

A collapse of aircraft deals struck under the nuclear pact would also hit Airbus's 2018 order book harder than Boeing's.

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He was also in charge of two matches at the 2014 World Cup; Germany's 4-0 win over Portugal and Argentina's 1-0 win over Iran. The 20-year-old has undergone ankle surgery after aggravating the injury he sustained on worldwide duty last month.

Airbus, based in Toulouse, France, is subject to US export restrictions because more than 10 percent of its jet parts originate with USA companies such as United Technologies, Rockwell Collins and General Electric.

Mnuchin also said the Trump administration would cancel waivers that allowed the sale of commercial aircraft parts and services.

Primary sanctions restrict U.S. companies from doing business with Iran.

He said there might be some exclusions, but he did not elaborate.

French oil giant Total is at risk of losing a contract to help develop Iran's South Pars gas field following the U.S. move.

Two European sources said Airbus was resigned to losing the historic Iran deals which had taken months of preparation, culminating in a Paris signing by President Hassan Rouhani in 2016.

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Following the 90-day period ending August 6, the Treasury also said it would revoke a licence that allowed USA companies to negotiate business deals with Iran.

"The E.U. has repeatedly stressed that the sanctions lifting has a positive impact on trade and economic relations with Iran", said an E.U. statement.

But the sanctions could be much worse news for Boeing's main rival Airbus.

Neither planemaker will be as concerned about the potential loss of a total of around 100 narrow-body plane orders from the Iranian deals, as demand for those jets is strong and they will have no problem in allocating production slots to other buyers. The new venture included an engineering and purchasing centre to support the development of local suppliers as well as a plant with an initial production capacity of 150,000 vehicles a year, supplementing Renault's existing capacity of 200,000 vehicles a year in the country.

Russia's foreign ministry meanwhile said Moscow was "deeply disappointed" by Trump's words, but then went much further, adding that they were "trampling on the norms of worldwide law".

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