Iran Awaits Airbus Decision on Contract for 100 Aircraft

Iran is awaiting a response from Airbus in the coming days to determine the fate of the 100 aircraft it ordered from the company, a situation that seems to be jeopardized by the U.S. government's announcement to withdraw from the JCPOA and reimpose sanctions against Iran. This contract is potentially worth around $18 to $20 billion and was signed in the winter of 2016, but only three aircraft have been delivered to Iran since then. Some experts attribute this delay to the caution and hesitance of banks in trading with Iran. In this context, U.S. President Donald Trump's decision to exit the nuclear agreement with Iran could severely impact this contract, as Washington has simultaneously announced that it will no longer grant licenses for the export of aircraft parts to airlines to sell planes to Iran. Although Airbus is a European company, it relies on American technology and parts in its aircraft production. The Fars news agency reported on May 10 that Asghar Fakhrieh Kashan, an advisor to Iran's Minister of Roads and Urban Development for international affairs, stated that Airbus will announce its decision in the coming days. He said, 'It is too early to judge the Europeans' decision. We must wait to see what position the airlines will take, and based on this position, we will make our decisions.' Mr. Fakhrieh Kashan also mentioned that Iran has not paid any advance money to Airbus or Boeing and would not incur losses if the contracts were halted. Reuters reports that Washington's decision to resume sanctions against Iran, which potentially threatens Iran's contracts with Western aircraft manufacturers, could cause significant losses for Airbus. Iran Air has ordered a total of 200 passenger aircraft, of which 100 were to be supplied by Airbus, 80 by Boeing, and 20 by ATR. The implementation of all these contracts is also dependent on American licenses, as many of the parts used by these companies are of American origin.