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Boeing, Airbus reports exploding aircraft deliveries at the end of the Farnborough air show.
Airbus and Boeing say that at Farnborough International Airshow the air show has seen a strong increase in air travel amid the increase in passenger and freight transport. Global airliner manufacturers declared fixed orders and promises for hundreds of millions of dollars needed for further acquisitions when the trade show's business side closed on Thursday. Boeing, headquartered in Chicago, placed a combined 673 orders and pledges for airplanes, up from 571 at last year's Paris Air Show, which alternated with Farnborough as the industry's leading flagship project.
The Airbus said it had won orders and promises for 431 planes against 326 at the Paris Air Show.
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Iran's new penalties will destroy millions of dollars in jets sold. The Boeing is prepared
The Boeing will loose billion of dollar in turnover because the penalties against Iran President Trump have just been heralded. Finance Minister Steven Mnuchin said Tuesday to news reports that licences for Boeing and Airbus to ship airliners and related parts to Iran will be withdrawn after 90 days. Turnover and profit of the manufacturer are very high, and it has an order book of almost 6,000 passenger aircrafts with a value of about 486 billion US dollar.
Not even Iran's 110 ordered planes. Indeed, Boeing had prepared to slow down Iranian shipments before Tuesday's news. He said the United States is withdrawing from the business of restricting Iran's atomic weapon programme and reintroducing trade restrictions against Iran.
Last monthsEO Dennis Muilenburg said to shareholders that Boeing had already postponed schedules for the first Boeing 777 aircraft initially scheduled for Iran. He said there would be no problems if these orders from Iran were cancelled on a permanent basis, as the present manufacturing schedules are no longer dependent on these disposals.
He said that if US-Iran relationship improves and revenues resume, it will be a win-win situation for Boeing. The Boeing has reached agreements to divest 80 planes to Iran Air and another 30 to Iran Aseman Airlines. It estimated the two sells at $19 billion, although government Iranian officials had said the real selling dollar was nearer $10 billion.
Among the greatest inducements Iran had to conclude an agreement with the US and Europe to end penalties was to gain entry to advanced airliners and spare parts for current ones. Aeroplanes used by Iranian Air and other carriers are among the oldest in the world.
Over the next few years, government authorities in Iran have said they will buy about 500 passenger planes and return to the United States with non-stop services. Who' ll lose from Trump who kills the Iran transaction? For a long time President Trump has been a reviewer of the Iranian Atomic Energy Treaty, which abolished Iran's fines. Thus, there were reasons for investor doubts that Boeing's Iran sale would get through.
The Boeing (BA) share is one of the best stocks in the bluechip index and has risen by 15% so far in 2017. The Boeing and Airbus (EADSF) companies are practically a pair in the global sale of airliners, controlling almost the whole airliner sales area. It has also signed contracts for the sale of more than 100 aircraft to Iran.
However, even if EU nations do not sanction Iran, these Airbus sells to Iran could be obstructed by US penalties anyway, as Airbus has a US factory and its aircraft use US components. "We are analysing the notification carefully," Airbus said in a declaration following Trump's notification, "and will evaluate the next step in accordance with our own guidelines and in full accordance with penalties and exit controls rules.