TEHRAN, Iran (AP) — Iran’s official IRNA news agency is reporting the deputy transport minister as saying that his county will only pay half of the announced price for 80 new Boeing planes, given the reductions in its purchasing options.
According to the Sunday report, Asghar Fakhrieh Kashan says that despite an initial $16.8 billion deal with Boeing to purchase 80 passenger planes, “Regarding the style of our order and its options, the purchase contract for 80 Boeing aircraft is worth about 50 percent of the amount.” He did not elaborate.
Boeing has made no immediate comment.
Iran announced earlier this month that it had finalized the deal, which was made possible by last year’s landmark nuclear agreement. It is the largest single contract with an U.S. company since the 1979 revolution and takeover of the U.S. Embassy.
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It also includes 30 777s, a wide-body, twin-engine plane typically used on long-haul routes that is popular with other Persian Gulf carriers such as Dubai-based Emirates.
There’s nothing unusual about such a discount – all airliners are sold for substantially less than list price, and big buys command the biggest discounts.
Iran’s order includes 50 single-aisle 737 Max 8s, the upcoming version of Boeing’s existing narrow-body 737 line, and 30 Boeing 777 wide-body jets.