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US Business Opening Up with Iran After Approved Airbus Boeing Export?
Iran Air
Iran Air
Sep 23, 2016 - The US Treasury Department’s Office of Foreign Asset Control (OFAC) has issued licenses to Airbus and Boeing for export of aircraft to Iran. The government has approved a deal for Boeing to sell Iran Air 80 commercial passenger aircraft.Both aircraft manufacturers confirmed the decision on September 21, 2016.

"These licenses contain strict conditions to ensure that the planes will be used exclusively for commercial passenger use and cannot be resold or transferred to a designated entity," a Treasury spokesperson said.

Airbus and Boeing were awaiting the US decision on the export license for the aircraft. The latest news said that the US allowed Airbus to start exporting aircraft to Iran, and a license to Boeing will be granted in the following days.

Airbus has been approved for early deliveries of 17 A320s and A330s to Iran Air. Boeing will be allowed to complete negotiations under a Memorandum of Agreement (MoA) with Iran Air for 80 aircraft of various models: 737, 777 and 787.

Boeing will also arrange the lease of 29 additional airplanes to Iran Air. Even though based in the UK, Airbus‘ transaction also required the US Treasury’s export license due to Airbus jets having 10% US content, mainly in the form of computers and navigational equipment.

Tehran and Boeing previously agreed on the purchase of 80 aircraft and on the lease of additional 29, but afterward trimmed the order to 108.

In January 2016, Airbus was the first company to sign an agreement with Iran Air under the Joint Comprehensive Plan of Action (JCPOA).The agreement included an order for 118 aircraft of various models, valued $27 billion: A320, A320neo, A330, A330-900s, A380 and A350-1000s. Iran still has not decided on the A380 aircraft, and recently cut the order to 112.

Iran’s government is reported to have also ordered up to 40 ATR turboprop planes, which also need export approval from the US.

Source: Various Sources

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