Boeing and Airbus poised to make a killing off the Iran deal

[davidn3600]

DUBAI (Reuters) - Iran plans to buy as many as 90 planes per year from Boeing (BA.N) and Airbus (AIR.PA) to revamp its antiquated fleet once Western sanctions are lifted, its state news agency IRNA quoted a senior aviation official as saying on Sunday.

"Iran will buy a total of 80-90 planes per year from the two aviation giants in the first phase of renovating its air fleet," said Mohammad Khodakarami, the caretaker director of Iran’s Civil Aviation Organization, according to IRNA.

Last month's nuclear deal between Tehran and world powers has raised the prospect of banking and trade sanctions on Iran being lifted, perhaps around the end of this year, which would mean a chance to renew a fleet of commercial aircraft whose average age of 23 years is almost twice the international average.

"We will purchase planes from Boeing and Airbus in equal numbers," Khodakarami was quoted as saying, adding that Iran would initially need to add at least 80 planes to its fleet each year. That would mean a total of 300 planes within five years, he added.

http://finance.yahoo.com/news/iran-plans-buy-80-90-083327597.html

Many other corporations are already forming plans to get into Iran the moment sanctions are lifted (could be as early as the end of this year). Energy companies will want to get in there and help modernize Iran's equipment which will increase its output of crude and other resources. Companies like Halliburton will benefit big from this aspect. Multinational banks of course will benefit by financing all this new business. And there was a report I read where even McDonalds is already looking into eventually opening a franchise in the country.

[BlueJazz]

1. Fox News will tell their viewers tomorrow "Iran will buy one hundred 737 Fighter Jets"

......after Obama sets them free.

[scscholar]

2. Why would they buy both?

Twice as much training and parts costs make that an idea that would only happen if there was someone behind the scenes forcing them to. It's probably Boeing since they would get no business unless someone forced Iran to buy from them given their horrific untrained workforce and poor designs. I live in the Seattle area now, so it's sad to see Boeing destroy so many lives. Destroy.

[pnwmom]

3. Horrific untrained workforce? 80,000+ Seattle Boeing workers would disagree. n/t

[scscholar]

7. I wasn't talking about them!

Their days are numbered anyway. Boeing has decided to replace them with morons. The company has no future. No future.

[muriel_volestrangler]

4. It's a normal thing for airlines to buy both

British Airways: http://www.britishairways.com/en-gb/information/about-ba/fleet-facts

Qantas: http://www.qantas.com.au/travel/airlines/fleet-developments/global/en

Singapore: http://www.singaporeair.com/en_UK/flying-with-us/ouraircraft/

and so on. Differen models may suit their needs better, and having a relationship with 2 suppliers means both know you might go to the other for a new order if they don't offer a good enough deal.

[Recursion]

5. It has pluses and minuses

The US Navy generally uses two suppliers for all of its acquisitions to avoid lock-in and monoculture. Plus it lets them play each off the other on price. So, a supply chain that's twice as complex (or arguably four times as complex) in exchange for better resiliency.

[geek tragedy]

8. so you can negotiate decent prices with both instead

of getting jacked by one.

also, if there's a delay, or serious defect, in one company's product line they can shift to the other

[Recursion]

6. Sounds like some really good news

That's a lot of American jobs there.