Sunday, December 11, 2016

Boeing, Iran Air Sign $16.6 Billion, 80-Jet Deal, First Since 1979

Boeing will sell Iran Air 80 jets worth $16.6 billion at list price, the aerospace giant's first such deal since Iran's Islamic Republic took power in 1979.

The deal includes 50 737 MAX 8s, 15 777-300ERs and 15 777-9s, Boeing said on its website Sunday. The actual price is likely less than $16.6 billion, because deals are typically discounted from list prices.

Boeing had reached a Memorandum of Agreement with Iran Air announced in June. The U.S. government gave the green light to a deal in September.

Boeing's European rival Airbus in January agreed to sell 118 planes to Iran Air in a deal valued at around $25 billion at list prices.

The deals follow Iran's nuclear deal with the U.S. and other western powers in January. President-elect Donald Trump has harshly criticized that deal and threatened to tear it up.

Trump last week went on Twitter to criticize a contract to build new Air Force One presidential jets as too expensive, saying the government should cancel the order.

Boeing stressed that the Iran Air will support U.S. manufacturing jobs, something that Trump has stressed as priority before and after the election.

"Today's agreement will support tens of thousands of U.S. jobs directly associated with production and delivery of the 777-300ERs and nearly 100,000 U.S. jobs in the U.S. aerospace value stream," Boeing said in a statement.

(Ed Carson - Investor's Business Daily)

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