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Iran, Us to Revoke Licenses for Airbus, Boeing Sales

Kayhan – As Donald Trump pulled the United States out of the 2015 Iran nuclear agreement on Tuesday, U.S. Treasury Secretary Steven Mnuchin said licenses for Boeing Co and Airbus to sell passenger jets to Iran will be revoked. 

Iran“The Boeing and Airbus licenses will be revoked,” Steven Mnuchin told a group of reporters Tuesday. The aircraft sales were among the most sought-after contracts for Iran. Boeing and Airbus will lose contracts worth roughly $39 billion to replenish Iran’s fleet of commercial planes as part of the Trump administration’s reimposition of sanctions.

In December 2016, Airbus Group signed a deal to supply national carrier Iran Air with 100 airplanes for around $19 billion at list prices. It has delivered three planes so far, the first new aircraft acquired by Iran in 23 years. Boeing later inked a deal with Iran Air for 80 aircraft with a list price of about $17 billion, promising that deliveries would begin in 2017 and run until 2025.

The company separately struck a 30-airplane deal with Iran’s Aseman Airlines for $3 billion at list prices. No deliveries have been made yet. Gordon Johndroe, a Boeing vice president, said in a statement: “We will consult with the U.S. Government on next steps. As we have throughout this process, we’ll continue to follow the U.S. Government’s lead.” Boeing’s stock fell 0.6 percent and closed at $338.37 a share.

Airbus, based in Toulouse, France, is subject to U.S. export restrictions because more than 10 percent of its jet parts originate with U.S. companies such as United Technologies, Rockwell Collins and General Electric. Mnuchin also said the Trump administration would cancel waivers that allowed the sale of commercial aircraft parts and services. The U.S. administration said the Boeing and Airbus licenses to Iran will be revoked.

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