Iran Air, Volga Dnepr deals help Boeing production gaps but don’t solve them

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Introduction

June 24, 2016, (c) Leeham Co.: Boeing's recent deal with Iran Air for 100 737s, 777s and 747s and its indication that a Memorandum of Understanding with Volga Dnepr may be firmed up will help fill production gaps on the 777 Classic and 747-8 lines. But these transactions won't fully fill the gaps.

Boeing declined to detail the breakdown of its order--which is still subject to US government approval--but Reuters and The Wall Street Journal obtained the detailed list.

The Volga Dnepr MOU was announced last year at the Paris Air Show for up to 20 747-8Fs. This month, news emerged that this MOU appears to be firming up for 10 plus options or commitments. This contract may be announced at the Farnborough Air Show.

Summary
  • Iran Air deal includes four 747-8s and 15 777-300ERs. Helpful, but not enough to fill the production gaps.
  • Volga's firming of 10 orders is helpful for the 747-8, but even at a reduced production rate of six airplanes per year, a significant gap remains.

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