Boeing And Kuwait Negotiations Continue

Posted: Nov 7 2015, 11:48am CST | by , in News | Latest Business News


Boeing and Kuwait Negotiations Continue
Photo Credit: Getty Images

The price of oil is the key to whether or not the deals will happen.

Boeing has recently hit a high note, despite having some problems in the last few years. They are also giving indication about a near-term sale of F/A-18E/F Super Hornets to Kuwait, according to Reuters. Boeing, which is the second largest weapon maker in the world, said that some of the lower oil prices were delaying purchases by the countries that rely on high prices for commerce.

"There are things that we're waiting on... those things are going to be cleared and we think they're going to be cleared soon," Boeing's Paul Oliver said in response when he was asked a question on whether or not discussions about a reported $3 billion F/A-18 deal with Kuwait talks were making progress and moving toward an eventual resolution. Oliver, who is the vice president of international business development in both the Middle East and Africa did not specifically name Kuwait.

The US has not publicly spoken about the talks to sell Boeing fighters to Kuwait, but those closest to the deals say that it could stand to make the company over $3 billion. Of course, they need to jump over some regulatory hurdles, but that is said to be on tract to be done before the end of the year.

Kuwait signed a memorandum to buy 28 Eurofighter jets built by Finmeccanica (Italy), BAE Systems (Britain), and Airbus Group in September.

At a news conference this Saturday, Boeing officials said that they were working on some prospects but declined to identify any particular buyers. Kuwait isn't the only Middle Eastern country looking to get newer, more high-tech equipment to protect themselves from Iran and other, internal threats.

"They've put some things on the shelf... they want to be very prudent, but they're focused on needs right now," Oliver said in Dubai ahead of the Dubai Airshow.

Some believe that these programs will be delayed by at least three years because of the low oil prices.

"I don’t think anybody is looking at any of these things to be over quick," Oliver said.

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The Author

<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.




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