Air­bus, Boe­ing will sell to Iran

Some an­a­lysts are skep­ti­cal that Iran has a large enough de­mand for air­craft, and that it has enough fi­nanc­ing

China Daily (USA) - - BUSINESS - By AS­SO­CI­ATED PRESS

Avi­a­tion giants Air­bus and Boe­ing Co have re­ceived per­mis­sion from the US gov­ern­ment to sell air­craft to Iran, part of land­mark deals po­ten­tially worth some $50 bil­lion in to­tal fol­low­ing last year’s nu­clear ac­cord.

Chi­ne­seThe an­nounce­mentsauthor­i­ties onon Thurs­day Wed­nes­day an­nounced­came as the Ira­ni­an­con­di­tional and US lead­er­slift­ing of are a in 13-year New im­portYork for ban the on Unit­ed­some US Na­tions­bone­less Gen­eral beef and Assem­bly­beef on and the bone. show that The the re­moval out­go­ing of ad­min­is­tra­tionthe ban ap­plies to of cat­tle Pres­i­dent­that are Barack­un­der 30 Obama month­sis hon­oringold, ac­cord­ingthe eco­nomicto a joint state­ment­terms of the is­sued nu­cle­aron Thurs­day­pact. by the Min­istry of Agri­cul­tureThe next and ad­min­is­tra­tion,the Gen­eral Ad­min­is­tra­tionhow­ever, may changeof Qual­ity that Su­per­vi­sion,equa­tion for In­spec­tionAir­bus an­dand Quar­an­tine.Boe­ing, whose pos­si­ble deal with Iran would be the big­gest for an Amer­i­can com­pany since the 1979 Is­lamic Rev­o­lu­tion and US Em­bassy takeover.

Euro­pean air­plane man­u­fac­turer Air­bus an­nounced the li­cense from the US Trea­sury’s Of­fice of For­eign As­sets Con­trol early Wed­nes­day. Boe­ing fol­lowed with its own an­nounce­ment later in the day.

Air­bus needed the ap­proval of the US Trea­sury for the deal be­cause at least 10 per­cent of the man­u­fac­turer’s com­po­nents are of US ori­gin.

Air­bus ap­plied for two li­censes to cover its deal with Iran to en­sure the fast de­liv­ery of some of the air­craft, Air­bus spokesman Justin Dubon told The As­so­ci­ated Press. The li­cense an­nounced on Wed­nes­day cov­ers the first 17 planes in­volved in the deal, which will be A320s and A330s, he said.

Dubon said Air­bus hoped to re­ceive a sec­ond li­cense al­low­ing it to sell the re­main­ing planes to Iran soon.

In Jan­uary, na­tional car­rier Iran Air signed agree­ments to buy 118 planes from Air­bus, es­ti­mated to be worth some $25 bil­lion. On Sun­day, state TV re­ported that As­ghar Fakhrieh Kashan, a deputy trans­porta­tion min­is­ter, said Iran would cut the num­ber of Air­bus planes to 112.

Base model A320s are listed at an av­er­age of $98 mil­lion, while A330s start at $231.5 mil­lion. That puts the value of the ap­proved 17 air­craft in the first li­cense around at least $1.8 bil­lion and pos­si­bly much higher based on list prices, though buy­ers typ­i­cally ne­go­ti­ate siz­able dis­counts for bulk or­ders.

Un­der Boe­ing’s deal, Iran Air will buy 80 air­craft with a to­tal list price of $17.6 bil­lion, with de­liv­er­ies be­gin­ning in 2017 and run­ning un­til 2025. Iran Air also will lease 29 new Boe­ing 737s in a deal that Ira­nian of­fi­cials have sug­gested would be worth some $25 bil­lion in to­tal.

In a state­ment, Boe­ing spokesman Marc Sk­lar said, “We have re­ceived that li­cense and re­main in talks with Iran Air” based on the mem­o­ran­dum of agree­ment reached in June.

US Trea­sury spokes­woman Dawn Se­lak ac­knowl­edged her agency granted the first li­censes to Air­bus and Boe­ing.

“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,” Se­lak said in a state­ment.

The li­cense ap­proval clears the way for the two plane man­u­fac­tur­ers to be­gin ac­cess­ing one of the last un­tapped avi­a­tion mar­kets in the world, home to 80 mil­lion peo­ple. How­ever, Western an­a­lysts are skep­ti­cal that there is de­mand for so many jets or avail­able fi­nanc­ing for two sep­a­rate $25- bil­lion deals.

The planes will be used ex­clu­sively for com­mer­cial pas­sen­ger use and can­not be resold or trans­ferred.” Dawn Se­lak, US Trea­sury spokes­women

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