Iran Signs Deal to Pay as Much as $1 Billion to Beef Up Airliner Fleet -- WSJ
April 14 2017 - 2:02AM
Dow Jones News
By Robert Wall
LONDON -- Iran's controversial effort to upgrade 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.
Aircraft maker ATR, which is based in Toulouse, France, said
Iran Air had signed a firm order for 20 ATR 72-600 regional planes
with options for 20 more. Deliveries could begin "within weeks" and
be completed next year, said the turboprop-making joint venture
between Toulouse-based Airbus and Leonardo, Italy's biggest
aerospace and defense company.
European and Asian firms have flocked into Iran after the
removal of economic 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
sanctions on Tehran last year in exchange for restrictions on its
nuclear program.
Iran is an attractive market for plane makers because of its
size and large fleet of aged 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 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, the world's No. 2 plane maker, began
delivering planes to Iran Air in January 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 14, 2017 02:47 ET (06:47 GMT)
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