Iran Air announced yesterday that it has confirmed a Memorandum of Agreement (MOA) from June as a firm order. The deal includes 50 737 MAX 8s, 15 777-300ERs and 15 777-9s, which are valued at $16.6 billion at list prices.
Iran Air’s rationale for placing such a jumbo order must be to ensure the deal is so significant in terms of income and jobs to the US economy that any politically motivated cancellation would be difficult.
Indeed Boeing was keen to stress the jobs angle in its press release: “Today's agreement will support tens of thousands of U.S. jobs directly associated with production and delivery of the 777-300ERs and nearly 100,000 U.S. jobs in the U.S. aerospace value stream for the full course of deliveries… Boeing and its more than 13,600 U.S. supplier and vendor partners across all 50 states are proud to ensure America continues to lead in global aerospace and to create jobs and opportunities in communities across the nation. Boeing's U.S. supply chain currently supports more than 1.5 million U.S. jobs.”
Boeing also stressed that it has acted in full coordination with the U.S. Government throughout the process leading up to the sale and continues to follow all license requirements as it moves forward to implement the sales agreement. Once the contingencies have been cleared, Boeing will book the order in its official Orders & Deliveries.
One hopes the same rationale will be used for Congress to reactivate Eximbank, which will be needed once the first aircraft start delivering in 2018.
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