Boeing to consult U.S. after Trump move puts Iran jet deal in jeopardy

Boeing to consult U.S. after Trump move puts Iran jet deal in jeopardy

WASHINGTON (Reuters) - Boeing Co said on Tuesday it will consult with the U.S. on "next steps" after President Donald Trump's decision to withdraw from a 2015 agreement designed to deny Iran the ability to build nuclear weapons, put a $17 billion deal to sell jets to Iran in jeopardy.

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

The U.S. Treasury Department, which controls licensing of exports, said the United States will no longer allow the export of commercial passenger aircraft, parts and services to Iran after a 90-day period.

IranAir's order totalled 200 passenger aircraft worth $38.3 billion at list prices, and included 100 from Airbus and 20 from turboprop aircraft maker ATR, which is co-owned by Airbus and Leonardo . All the deals are dependent on U.S. licences because of the heavy use of U.S. parts in commercial planes.

European planemaker Airbus said on Tuesday it will study Trump's decision, adding that it would take some time.

"We're carefully analysing the announcement and will be evaluating next steps consistent with our internal policies and in full compliance with sanctions and export control regulations," Airbus communications chief Rainer Ohler said.

Following the 90 day period ending Aug. 6, the Treasury also said it would revoke a license that allowed U.S. companies to negotiate business deals with Iran.

"As we have throughout this process, we’ll continue to follow the U.S. government’s lead," Boeing spokesman Gordon Johndroe said.

Boeing Chief Executive Dennis Muilenburg said last month the airplane manufacturer has no Iranian deliveries scheduled this year. He said Boeing's 777 production plan "is not dependent on the Iranian orders." Muilenburg is set to address the Economic Club of Washington on Wednesday.

The IranAir order included 15 Boeing 777-300ER long-range jets. Industry sources said Boeing had been tentatively due to send Iran three 777s this year but has reshuffled deliveries with other buyers.

Shares of Boeing fell 0.4 percent to $339.05 after Trump's announcement that the United States was leaving the Iran nuclear deal and that Washington would reimpose economic sanctions on Tehran.

(Reporting by David Shepardson; Editing by Paul Simao and Chris Reese)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: May 09, 2018 03:05 AM

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