Published: Sat, May 12, 2018
Worldwide | By Isabel Fisher

Iran says Airbus to announce decision on selling planes to Tehran

Iran says Airbus to announce decision on selling planes to Tehran

Boeing and Airbus are losing their licenses to export commercial planes and related parts to Iran after President Donald Trump announced he's pulling the US out of the 2015 Iran nuclear agreement.

Airbus is particularly more exposed on widebody jets, for which sluggish global demand has forced it to revise down part of its production plans; Iran has ordered 53 widebody jets from Airbus and 30 from Boeing.

Boeing in December 2016 announced a landmark agreement to sell Iran Air 80 aircraft valued at $16.6 billion.

The plane orders, badly needed to upgrade the Islamic Republic's museum-vintage airliners, would have had the potential to build Tehran into an aviation hub that could better compete with Dubai and Qatar, the region's aviation super powers.

"The US and its allies... can not impose restrictions on Iran's legitimate defenses, including our missile defense, which has been developed to deliver conventional weapons, taking into account the bitter experience of the Imposed War [the Iran-Iraq war in 1980-1988]", the government said in a statement posted on its website.

Iran has so far imported at least 11 aircraft, three of them from Airbus and eight from Franco-Italian turboprop maker ATR.

The Iran deal was struck in 2015.

"We have no Iranian deliveries that are scheduled or a part of the skyline this year, so those have been deferred in line with the USA government processes", Boeing CEO Dennis Muilenburg told investors April 25.


Around 120 German companies have operations with their own staff in Iran, including Siemens, which was in talks to develop Iran's rail network, and some 10,000 German companies trade with Iran.

Still, Boeing's wide-body portfolio is not without risk. "In terms of hoping for (wide-body) revenue that won't be there, neither feels good right now", Aboulafia added.

He said Boeing had no Iranian deliveries scheduled this year and they had been deferred in line with U.S. government process. A pretty placid response, considering a potential loss of $20 billion. Analysts say the deadline for deliveries suggests ATR had started building some of the remaining planes, potentially leaving it with unsold aircraft.

The Trump administration Tuesday gave companies 90 to 180 days to wind down existing contracts. The big question now is how the US will treat its allies, which want to maintain the deal despite the U.S.'s withdrawal: Will it take measures against their companies if they continue to do business with Iran?

Volkswagen vlkay had been reticent about entering the Iranian market, due to its exposure to the USA market, but past year it started selling cars in the Islamic Republic again.

Trump also stated that he would re-impose U.S. sanctions on the country.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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