27 Apr 2024
Tuesday 31 January 2017 - 10:29
Story Code : 249133

Trump order casts further doubt on Boeings Iran deal

The Seattle Times| Boeings pending $8 billion deal with Iran Air was already in serious doubt before President Trumps executive order Friday barred travel to the U.S. by Iranian nationals for the next three months.

The travel ban adds an immediate logistical barrier as pilots, cabin staff and maintenance crews will be unable to enter the U.S. for training on how to fly and safely maintain Boeing airplanes.

More significantly, the relabeling of Iran as a country thats a source of potential terrorists may signal that the U.S. is likely to pull out of the 2015 nuclear accord, reached by former President Obama, that lifted U.S. sanctions on Iran and gave Boeing its opening in the first place.

Yet as the jet maker tries to avoid getting on the wrong side of the president, Boeing will say very little publicly.

Adam Pilarski, vice president with industry consulting firm Avitas, said the travel ban could be bypassed if the will were there. If the Trump administration decided it wants Boeing to sell some airplanes and travel was required to make it happen, waivers could be granted, he said.

But that doesnt seem likely.

During the election campaign, Trump and a number of people close to him said they hate the Iran nuclear deal, said Pilarksi. A number of his military advisors have been strongly anti-Iran.

Richard Aboulafia, aviation analyst with the Teal Group, also doesnt hold out hope for Boeings sales agreement.

My assumption has been they are going to re-impose sanctions, so its probably dead anyway, he said.

The agreement Boeing announced with Iran Air in December for 80 aircraft, consisting of 50 single-aisle 737 MAX 8s, 15 large current model 777-300ER widebodies and 15 next generation 777-9X widebodies was particularly welcomed in Everett, where it would help partially fill a looming gap in 777 production that has already led Boeing to cut the 777 rate.

The deals now-doubtful status contrasts with that of a parallel deal also announced in December by European rival Airbus.

The Airbus deal with Iran Air was for 98 aircraft, including 46 single-aisle airplanes and 52 widebody jets, worth about $8.4 billion.

Airbus finalized the deal before year end, and then for good measure rushed to deliver the first airplane to Iran in January, making the deal a fait accompli.

Airbus was smart, said Pilarski. They immediately delivered a plane, so its hard to step back.

Mohammad Yahyavi, an Iranian-born former Boeing vice president who is now retired and living in Bellevue, said he agees with Trumps moves to restrict immigration and travel from seven named countries, including Iran.

Its absolutely necessary that we have secure borders and legal immigration, Yahyavi said. Hes making sure we are all safe.

 
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