Military
Boeing Traveling to Iran; Still Fighting for Order from Delta
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In mid-February, Boeing Co. (NYSE: BA) received permission from the U.S. government to initiate discussions with Iranian airlines that could lead to the sale or leasing of new planes. On Saturday, Iran’s official news agency reported that a delegation from the company will visit the country.
Bloomberg reported that the head of Iran’s Civil Aviation Organization said, “Boeing intends to launch its talks with Iranian companies with permission from the U.S. government.” For its part, Boeing has said it does not plan to sell Iran any airplanes on this visit, but will discuss fleet options with Iranian officials.
Airbus already has received an order for 118 new jets from Iran. The January order included 73 wide-body and 45 narrow-body planes, including 12 superjumbo A380s. At the time of the order, the country’s transport minister estimated that Iran needs 400 medium-range and long-range planes and 100 short-haul jets over the next few years.
Airbus, Bombardier and Embraer S.A. (NYSE: ERJ) also are competing for the business, and Delta could make a decision by the end of this month.
Boeing recently sold 25 737-700s to United Continental Holdings Inc. (NYSE: UAL) for United Airlines by undercutting Bombardier’s price for the Canadian company’s new CS100 jet. The 737-700 carries a list price of $80.6 million and Boeing may have sold the planes to United for as little as $20 million. Boeing cannot afford to do that forever, and Airbus is in a much stronger position than Bombardier to compete on price for single-aisle business.
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