May 9, 2018 / 6:31 PM / 12 days ago

UPDATE 1-Boeing CEO says end of Iran deal won't hurt 737 production

(Adds details on potential Iran, Brazilian deals)

WASHINGTON, May 9 (Reuters) - Boeing Co’s chief executive said on Wednesday the company will ensure its 737 production will not be hurt after the United States revoked its license to sell jets to IranAir and that none of the 737 aircraft it had expected to sell to Iran were in its backlog of orders.

Dennis Muilenburg, who spoke at a luncheon for the Economic Club in Washington, also said the company continued to make progress in talks with Brazil’s Embraer SA, adding the deal is not something Boeing “must do.”

U.S. Treasury Secretary Steven Mnuchin said on Tuesday that licenses for Boeing Co and Airbus to sell passenger jets to Iran would be revoked as part of sanctions imposed following President Donald Trump’s decision to pull the United States out of the 2015 Iran nuclear agreement.

IranAir had ordered 200 passenger aircraft: 100 from Airbus SE, 80 from Boeing and 20 from Franco-Italian turboprop maker ATR. All the deals are dependent on U.S. licenses because of the heavy use of American parts in commercial planes.

Regarding the Brazilian deal, Boeing and Embraer were discussing a tie-up to create a new company in which the U.S. planemaker would have an 80.01 percent stake and the Brazilian firm 19.99 percent. (Reporting by Mike Stone; editing by Marguerita Choy and Jonathan Oatis)

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