Airbus Joint Venture Seals Iran Air Jet Order
April 13 2017 - 04:53AM
Dow Jones News
By Robert Wall
LONDON--Iran's controversial upgrade of its airliner fleet has
taken another step with a deal valued at up to $1 billion to buy
planes from a joint venture of Airbus SE and Leonardo SpA.
The Toulouse, France-based aircraft maker ATR said Iran Air had
signed a firm order for 20 ATR 72-600 regional planes and has
agreed to options for 20 more. Deliveries could begin "within
weeks" and be completed next year, the company said.
European and Asian firms have flocked into Iran after the
removal of sanctions on the country. American companies have
largely held back, unsure about whether President Donald Trump, a
sharp critic of the nuclear deal with the country when he was on
the campaign trail, would try to alter the pact or otherwise
discourage closer business ties.
Aircraft contracts, including those involving Boeing Co., the
world's No. 1 plane maker, are among the highest-profile deals
between western companies and Iran after foreign powers lifted many
economic sanctions last year in exchange for restrictions on
Tehran's nuclear program.
Iran is an attractive market for plane makers because of its
size and large fleet of obsolete planes after several decades of
sanctions made it difficult for Iranian carriers to buy new jets
and aircraft parts.
Boeing this month agreed to sell up to 60 single-aisle planes to
a second Iranian airline, Iran Aseman Airlines, after last year
finalizing a $16.6 billion deal with the country's flag carrier
Iran Air for 80 planes. The Chicago-based plane maker still is
awaiting final approval from the U.S. Treasury for those sales.
ATR said it had all the necessary licenses to start shipping its
70-seat turboprop planes which typically are used on shorter
routes. Parent Airbus in January began delivering planes to Iran
Air after last year finalizing the sale of 100 jetliners.
Some U.S. lawmakers remain opposed to the transactions, accusing
Iran of using commercial jetliners to ship money and weapons to
support terrorist activities. Iran has denied it supports terrorist
groups.
U.S. Senator Marco Rubio (R., Fla.) and Rep. Peter Roskam (R.,
Ill.) on April 10 sent a letter to President Trump asking the
administration to block U.S. companies from selling planes to Iran.
"We urge you to suspend current and future licenses for aircraft
sales to commercial Iranian airlines until your administration
conducts a comprehensive review of their role in supporting Iran's
illicit activity," the lawmakers wrote.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
April 13, 2017 05:38 ET (09:38 GMT)
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