Boeing's Iraq Deal a No-Bid Win

Aviation consultant Scott Hamilton called the uncontested award to Boeing "a payback for American involvement in the war," noting that the French were not backers of the war in Iraq. "I have to believe that given the close ties between the state department and the Iraqi government, there was probably a little discussion that this contract should go to Boeing and not to Airbus," he said.

Delivery dates are not included in Boeing's press release announcing the sale to Iraq, but Conte said the expected dates "are well into the next decade." That is understandable, Hamilton said, "given all the talk about how military planes have to corkscrew into the Baghdad Airport."

In a prepared statement made available by Boeing, Iraqi finance minister Bager Jabor Al Zubaidy said, "We are very comfortable with our selection of Boeing airplanes as the basis of our fleet renewal and pleased to count Boeing as a trusted partner in supporting our reconstructive efforts."

Besides providing aircraft, Boeing said it will assist with reconstruction of Iraq's aviation infrastructure, offering advice on airport development and aircraft maintenance (Iraq intends to fly used aircraft until the new ones arrive) as well as assistance in training aviation personnel.

"As we work together in support of Iraq's plan to build a national carrier, we envision the day when a modern and efficient fleet of airplanes will directly support Iraq's economic development and growth," said Scott Carson, president of Boeing commercial aircraft.

In addition to its Boeing order, Iraq ordered 10 CRJ900 regional jets from Canadian manufacturer Bombardier. The planes have a list price of about $400 million: Iraq holds options for 10 additional planes. It was not clear whether Bombardier competitor, Brazil-based Embraer, had bid for the contract. An Embraer spokesperson was not immediately available to comment.

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