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Wed, Dec 14, 2016

Iran Deal Won't Stop Planned Boeing Production Cut

Will Lower 777 Assembly Rate To 60 Per Month Starting Next August

Boeing's highly-touted deal to sell airliners to Iran Air will not change the company's plan to cut production of the 777 from 100 to 60 per year next August, according to the company.

The plans to cut production from 8.3 to five airplanes per month were announced earlier this year. CNN Money reports that Elizabeth Lund, vice president for the 777 program, said that several ongoing campaigns for widebody airplanes "haven't concluded in time to keep the rate steady."

Lund said job cuts were expected as a result of the production decrease, but the exact number of jobs to be lost has not been determined.

The deal with Iran Air includes 15 current-generation 777-300ER airliners with deliveries planned to begin in 2018.

But the deal faces an uphill battle, including a lot of opposition on Capitol Hill. Congressman Peter Roskam (R-IL) said that in his view, "the likelihood of those Boeing planes ending up in Iranian hands diminishes by the day."

(Image from file)

FMI: www.boeing.com

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