Boeing finds other buyers as prospects for Iran sales dwindle
There is a sense of deja vu as Boeing finds other countries, including the United Arab Emirates, to fill its order books amid US government pressure.
Preparing for the possible imminent collapse of the Iran nuclear deal, Boeing Co. has been signing contracts with other buyers, including Iran's adversaries across the Persian Gulf, to cushion the loss of $17 billion in sales to Iran.
In a conference call Wednesday to announce healthy first quarter earnings of $23.4 billion, Boeing CEO Dennis Muilenburg was asked about the impact of uncertainty over US sanctions on the sale of 15 long-range 777-300ER jets to Iran for which the company had obtained US export licenses. Three of the planes had been scheduled for delivery this year.
Muilenburg said deliveries to Iran "have been deferred again in line with the US government process." He suggested that the company had other buyers for the planes, which had been slated for Iran's national passenger carrier, Iran Air.
"I can tell you with confidence that we've continued to build risk mitigation into our 777 production plan," he said. "The plan that we outlined for you, the production rate that we've put in place is not dependent on the Iranian orders."
