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.
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