Boeing (NYSE: BA) says its top executive in the Middle East said the company's conservative strategy will protect it from any loss of business with Iran.
Boeing is playing down an estimated loss of $20 billion of sales to Iranian airlines after the U.S. moved to withdraw from a nuclear pact and re-impose sanctions on Tehran. Treasury Secretary Steve Mnuchin announced Wednesday that Boeing licenses to sell aircraft to Iran would be revoked following President Donald Trump's decision.
Bernard Dunn, who heads the carrier’s Middle East, North African, and Turkish operations, told the media on Thursday that the impact on overall business will be minimal.
"We mitigated the risk of Iran in our production plans. For 777 and 737 programs, there will be no risk at this time. Beyond that, we are following the lead of the U.S. government and we will consult with them as necessary," he said.
Dunn added that Boeing was a conservative company and that earnings results underlined a risk-averse strategy.
Boeing has early agreements with Iranian airlines for 110 planes worth about $20 billion at list prices. This pales with the U.S. firm's wider backlog which at the end of March, sat at about 5,800 airplanes.
The U.S. plane maker announced the largest of its deals with Iranian airlines in December 2016. This included 80 jets for Iran Air, including 50 of the 737 MAX 8 model.
And in April 2017, Iran Aseman Airlines signed an agreement to purchase 30 Boeing 737 MAX planes, with an option to buy 30 more
BA stock shot up $3.56, or 1%, to $346.35 early Thursday
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