- Airbus (OTCPK:EADSF, OTCPK:EADSY) is more than 1% lower as the U.S. withdrawal from the Iran nuclear deal - which includes revoking export licenses needed by planemakers to sell commercial planes that use U.S. components - leaves the company facing greater risks than arch-rival Boeing (BA +1.8%).
- Airbus is particularly more exposed on widebody jets, for which sluggish global demand has forced it to revise down part of its production plans; Iran has ordered 53 widebody jets from Airbus and 30 from Boeing.
- A collapse of aircraft deals struck under the Iran deal also will hit Airbus’s 2018 order book harder than Boeing’s; Airbus booked its Iranian orders early to enable it to edge Boeing in the 2016 order race, and now its entire YTD tally of 86 net orders could be eliminated.
- Boeing is ahead with 221 net orders for 2018, and had delayed booking the orders from its $16.5B Iran contract.
- “Airbus was very aggressive about booking orders and delivering planes and Boeing were very conservative; Airbus gets hit a bit worse,” says Teal Group's Richard Aboulafia.
- Now read: Boeing Steals Airbus Customer
Original article