A Deal has been struck with Iran that it will buy Boeing aircraft
in some numbers. It will announce by weeks end what the "Deal"
entitles Boeing and Iran in trade. The US federal government has oversight on
every aspect of the deal as it closely is monitoring Iran's aspiration in the
Mid-East region. The risk for Boeing is immense, if something were to go south
with Iran's political aspirations for its region. The deal should address every
aspect of the Boeing offering from Single aisle through the wide body family of
aircraft.
Expect some Iranian caveats in play as it has probably thrown Boeing
ancillary support and Boeing would expect some conditions are met completing
the whole "Deal". I would expect Boeing throwing a sweetener into the
deal pot from a bulk order point having some conditional aspirations joined
within the regions risk issues. However, the measure of the deal may enlighten
investors as compared with the prior Airbus purchase from last year. If Boeing
exceeds Airbus in units purchased then Boeing can expect a stock market surge,
where if Boeing losses ground to Airbus by unit count, investors should respond
as Boeing doing a high risk venture with an adversarial country and will mute
stock reaction. A generous commitment from Iran suggests its own renewal need
out-ways Boeing's risk taking.
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