Plane Deals

The Washington authorities said at the outset that it would also repeal the licence that manufacturers need to buy airplanes for sale to Iran. Though Airbus is a continental company, its aircrafts use US parts and technologies. "The chief advisor to Iran's Minister of Road and Urban Development, Asghar Fakhrieh-Kashan, said to semi-official Fars, "Airbus will announce its choice in the next few weeks.

"Iran has made no down payment to the planners for further deliveries," he added. A spokesperson for Airbus rejected a statement. Washington's re-introduction of penalties indicates the breakdown of approximately $38 billion in aircraft deals between Tehran and West companies, with Airbus faced with greater risk than its US competitor Boeing, say those participating in the deals.

IranAir, the domestic airline, had ordered 200 commercial jets, 100 from Airbus, 80 from Boeing (BA. N) and 20 from ATR. Business is all subject to the US licence as US parts are widely used in airplanes. So far Iran has been importing only about 11 aircrafts, three from Airbus and eight from the French-Italian turbo prop manufacturer ATR (LDOF.MI).

"We did not consider the option of such an end during our discussions with Airbus and Boeing and it was not included in the contracts," Fakhrieh-Kashan, a former vice secretary who was negotiating the agreements, said to Fars. Preliminary aircraft orders had also been placed by other Iranian carriers, but they were not yet required to conclude fixed agreements.

According to sector reports, Airbus agrees to lose the Iranian deal for the moment, but will consider its option thoroughly before removing it from its formal order books, as this could result in net order losses - orders less cancelled - for the year. Fakhrieh Kashan expressed the view that some shipments could still take place in a 90 to 180 day period, which would allow the reduction of ongoing operations under the new US penalties.

Other key parties to Iran's 2015 Atomic Energy Treaty, among them Europe, China and Russia, have declared that they will abide by the treaty. Germany, France and the United Kingdom, however, in order to reintegrate Washington into the treaty, want to hold discussions with Tehran in a wider form that includes Iran's rocket programme, its post-2025 military operations and its participation in Middle East conflict.

As part of the Atomic Energy Agreement, Iran curtailed its atomic programme in exchange for the abolition of most of the internationally non-nuclear penalties that had been applied to the nation that paralyzed its economies for years. The majority of penalties were abolished in 2016.