With Iran sanc­tions gone, Air­bus ex­pects huge or­der

Financial Mirror (Cyprus) - - FRONT PAGE -

Now that the In­ter­na­tional Atomic En­ergy Agency (IAEA) has con­firmed that Iran has com­pleted the “prepara­tory steps” that lead to the lift­ing of eco­nomic sanc­tions against the coun­try, there are likely to be some ma­jor eco­nomic im­pacts on other coun­tries and busi­nesses. One busi­ness that could be a big loser is the oil in­dus­try, while a big win­ner now ap­pears to be Air­bus Group SE and, po­ten­tially, The Boe­ing Co. (NYSE: BA).

The Middle East oil in­dus­try took a few hits Sun­day morn­ing on an Ira­nian an­nounce­ment that it plans to raise pro­duc­tion by about 1.5 mln bar­rels a day to 4.2 mln bar­rels by the end of this year, ac­cord­ing to a re­port at CNN. This is not ex­actly new news, and we would have ex­pected that the in­crease was al­ready priced in.

Iran has been barred from buy­ing new air­craft from Western mak­ers since the 1970s, and de­mand for new planes could be as high as 500 planes at a rate of 50 for some time, and Iran’s trans­porta­tion min­is­ter said on Satur­day that the coun­try’s flag car­rier, Iran Air, will buy 114 Air­bus pas­sen­ger jets as it sets out to upgrade a fleet of 45 planes with an av­er­age age of 26.8 years. Ac­cord­ing to a re­port from Bloomberg, the air­line will ac­quire new and used A320s and out-of-pro­duc­tion A340s with first de­liv­er­ies as early as July.

Iran Air cur­rently flies 13 Air­bus A300s, two A310s, and six A320-200s. None is less than 20 years old, way past re­tire­ment age for a mod­ern pas­sen­ger fleet, ac­cord­ing to Planespot­ters.

The air­line also in­cludes six Boe­ing 747s in its fleet and the av­er­age age of the four 747-200s is 35 years and the av­er­age age of the two 747SPs is 37.7 years. An Ira­nian of­fi­cial noted that the air­line is con­sid­er­ing adding Boe­ing 737s and 777s to its fleet. (Source: 24/7 Wall St.com)

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.