With U.S. President Donald Trump signing an executive order re-instating sanctions on Iran, Iran Air finds itself in a difficult position. So does Airbus. Boeing? Not so much.
The USA is withdrawing from the Iran nuclear deal framework. With that withdrawal and reimposition of sanctions, plane deals worth $38BN from Airbus and Boeing to Iran Air are effectively cancelled. The Iranian flag carrier ordered 100 planes from Airbus, 80 from Boeing, and 20 from ATR, an Italian-Franco turboprop manufacturer.
The Trump Administration will revoke export licenses for aircraft, hitting not only Boeing, but Airbus as well since so many component parts are made in the USA.
This move greatly harms Airbus’ A330neo program, already facing weak demand. The loss of the Iran Air deal further threatens the viability of the program. Meanwhile, Boeing already announced last month that it had found alternate homes for Iran Air’s 777-300ERs, including three that were supposed to be delivered this year. Narrow body aircraft from both Airbus and Boeing are part of the order, but due to strong demand are not a concern.
ATR has already delivered eight aircraft and should be able to deliver two more prior to the reimposition of sanctions. ATR may find itself with unsold aircraft, though. The aircraft manufacturer has apparently started production on additional aircraft it will be unable to deliver within 90 days.
CONCLUSION
Looking at this from a consumer view, I’m very sorry that Iran Air will fail to receive these new aircraft. I was secretly hoping for the announcement of new nonstop 777-300ER Iran Air service from Tehran to Los Angeles (West Tehran). Oh well. For Airbus’ sake, I hope it can find other homes for its A330neo aircraft.
image: Alex Cheban / Wikimedia Commons
Oh yeah, boo hoo for Iran Air. And boo hoo for Airbus, and Total and Shell, and other europeans who care more about buying Iranian oil than about their terrorist activities and continued nuclear ambitions.
The constitution requires that treaties be ratified by congress. Obama didn’t do that, he tried to skirt the constitution by making the deal so front loaded as to make it difficult for the next president to back out of. What a disgrace he was, handing over billions to the Iranians in the hopes they will suddenly play nice.
@WR
Amen brother.
The post carefully ignored all of these facts. Thank you for saying what needed to be said.
Damn straight!
I’m not trying to wade into the politics of this…only remark that this is a blow for Iran Air.
Looks like you have plenty Republicans as readers.
You Trump supporters truly have no integrity, no compassion, very low IQs and absolutely no soul whatsoever. Stay in America please, the rest of the world despises you.
Trust me on that one. DO NOT TRAVEL, we don’t want your money, your arrogance or your lack of culture.
Uh there were plenty of democrats who opposed the Iran deal how about senate democrat leader Schumer of NY for one. Perhaps you should google before spouting your ignorance. No compassion? Did you know most of the money went to the military? The suffering people there did not get a thing. How’s that for compassion. 28 days notice prior to inspection of nuclear sites and military sites were off limits. Only a moron would think this was a good deal. But hey you keep pretending you know best. I have no interest in starring in a beheading video so don’t worry I don’t plan on traveling to the country that’s the largest state sponsor of terror.
Whatever virgin.
Lol it’s funny b/c no matter what country you’re posting from, it would either be annihilated without the USA (I’m guessing it’s the UK, so we could do a history lesson on Churchhill sucking USA dick for help) or is the 3rd world which we have no desire to visit.
Thanks for your input, learn to respect those that saved your ass and could wipe it off the face of the Earth.
Oh also, I can guarantee I am smarter than you, but you might be right on the lack of compassion and soul. We are true to our evolutionary roots. Have fun weeding yourselves out with the SJW issues though!
Yeah, the Airbus angle of this is probably the least of our concerns at this point. The Iran deal was solely about their nuclear capability, we agreed to lift sanctions and unfreeze their money (its not like we paid them anything, all the billions that we “paid” to Iran was just them getting back access to their own money) in exchange for them dismantling their nuclear program. There was nothing in the deal about them ceasing their terrorist activities or meddling in Middle East geopolitics. The main reason for that is that we knew we couldn’t force Iran to stop their activities (any more than we could stop Saudi Arabia from its activities in the region), but a nuclear Iran would completely destabilize everything. The Western world realized that stopping Iran from going nuclear was crucial. That was the deal, and they have lived up to their side of the bargain regarding nuclear stuff, the fact that they are still funding terrorists and whatnot is something we all should have been willing to accept to prevent a nuclear Iran.
Also, how is this going to look to North Korea right before we go negotiate with them? Why would (or should) they trust anything Trump or the US says at this point? Even if you thought the Iran deal was a bad deal, Trump has been handed a rare opportunity with a North Korea trying to reach out to the rest of the world to prevent themselves from becoming a servant state of China. Why not just refuse to certify Iran deal next time (it’s not like Iran has done anything in particular that would justify not certifying the deal now like Trump did the last few times) and protect our options in North Korea? Now we are going to be coming into the bargaining table hobbled because why should North Korea, or South Korea for that matter, trust anything we have to say?
The Bloated Horror has made his decision and the rest of the world can go to hell. In the ( unlikely) event he manages to cling to power for another year, will we see sanctions against the US and a boycott of products?I would hope so.
And all the while the, Trump signs $350bn in sweetener deals with the Saudi’s, who along with the US and Israel are the real state sponsors of terror. Boeing can afford to loose a $20b deal. Saudi Arabia have indirectly compensated them for this.
Trump is a hypocrite.