Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Iran says potential deal for early jet delivery falls through

Published 04/27/2017, 03:45 PM
Updated 04/27/2017, 03:50 PM
© Reuters. FILE PHOTO: Boeing's logo is seen during Japan Aerospace 2016 air show in Tokyo
BA
-
AIR
-
THYAO
-

ANKARA (Reuters) - IranAir has abandoned plans to take early delivery of a Boeing (N:BA) 777-300ER jetliner because the passenger plane is no longer available, the head of the Islamic Republic's national flag carrier was quoted as saying by Iranian media.

Iran had been expected to receive the first of 80 aircraft ordered from the U.S. planemaker in April or May 2018, but Iranian media and industry sources said this month it might get the first Boeing jet a year earlier than expected under a proposal to swap deliveries with Turkish Airlines (IS:THYAO).

"Boeing had proposed to hand over a 777-300ER by summer after Turkish Airlines withdrew its order for it. We welcomed it ... However, when we were almost certain that we wanted the plane, it was no longer available," Chairman Farhad Parvaresh was quoted by Iran's English language Press TV as saying.

Industry sources had said Boeing was in negotiations to release at least one 777-300ER originally built for Turkish Airlines, which is deferring deliveries due to weaker traffic following last year's failed coup attempt in Turkey.

"We have currently stopped our negotiations in absence of the plane," Parvaresh was quoted as saying.

Boeing said it does not comment on specific deliveries.

"Boeing and Iran Air continue to work on implementing the sales contract for commercial passenger airplanes signed in December 2016, at which time we announced first deliveries are scheduled to start in 2018," a spokesman said.

"We continue to follow the lead of the U.S. government on all our dealings with approved Iranian airlines."

Since last year, when most sanctions imposed on Iran were lifted under a 2015 nuclear deal with six major powers, Tehran has joined a long waiting list for new airplanes and the swap would have allowed it to speed up its fleet renewal.

IranAir has also ordered 100 aircraft from Europe's Airbus (PA:AIR) under a deal to lift most sanctions in return for curbs on Iran's nuclear program, and has taken three deliveries.

Iran's return to the aviation market after decades of sanctions is a boon to planemakers trying to dispose of some new planes discarded by airlines facing economic difficulties.

© Reuters. FILE PHOTO: Boeing's logo is seen during Japan Aerospace 2016 air show in Tokyo

But Western banks continue to shy away from financing deals between IranAir and Western companies, fearing U.S. banking sanctions that remain in force or a new chill in relations between Tehran and the West under U.S. President Donald Trump.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.