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This is why Iran is paying half-price for the 80 Boeing airplanes

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Boeing 737MAX. Iran Air purchased 50 of these planes
Boeing 737MAX. Iran Air purchased 50 of these planes
Many are wondering why Iran’s national airline, Iran Air, is only expected to pay half for a $16.6 billion order for 80 Boeing airplanes.

This comes after Iran state news agency IRNA reported Iran’s deputy transport minister Asghar Fakhrieh Kashan saying it was paying the discounted rate because of “the style of our order and its options.”

Industry experts are saying this is standard procedure for bulk orders.

Teal Group aviation analyst Richard Aboulafia told The Street Tuesday Iran Air isn’t getting a deal other companies aren’t privy to receiving.

“Volume customers — that is, anyone who needs more than a dozen jets — get 50% off Airbus and Boeing list prices if they ask politely and wear a tie,” Aboulafia said.

Boeing announced the agreement December 11, which will allow the company to deliver 50 737 MAX 8s, 15 777-300ERs and 15 777-9s. Boeing was previously unable to do business with Iran because of nuclear-related sanctions placed upon the country. Iran was previously unable to purchase airplanes from Boeing and its chief rival Airbus after the takeover of the U.S. Embassy in Tehran in 1979. Airbus and Iran Air have a deal in place for 100 airplanes.

Some aviation experts, including AirSight aviation consultant Addison Schonland, have gone as far to say Iran didn’t get the best deal possible when it announced it would pay half price.

Boeing says it expects to deliver the first of its 80 airplanes to Iran in 2018.
TECH ALABAMA

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3 responses to “This is why Iran is paying half-price for the 80 Boeing airplanes”

  1. 5thDrawer Avatar
    5thDrawer

    Voila. The world of Business … not well-explaned in translations from Kashan secretives …
    And like i said, no showers, but skinnny jump-seats, will do. :-))
    One can buy a car the same way … ‘basic’ with an engine – or a pile of electronic ‘wonders’ that double the price. :-)))) Trucks with a cab and a seat are common … add your own camper to the back.

  2. Rascal Avatar
    Rascal

    “Volume customers — that is, anyone who needs more than a dozen jets — get 50% off Airbus and Boeing list prices if they ask politely and wear a tie,”

    Iran really had to pull their nuts in to get this deal, the tie is Iran’s national symbol of anti-Americanism. Get on your knees and beg for that deal and don’t forget the tie.

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