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Iran’s mega deal with Airbus inches closer to finalization

Only days after the US House voted against the Boeing and Airbus deals with Iran, the US Treasury issued a second license for Airbus to sell 106 aircraft to Tehran.
Airbus chief executive Fabrice Bregier (R), Iran Air chief Executive Farhad Parvaresh (L), Iranian President Hassan Rouhani (rear L) and French President Francois Hollande attend a bilateral political, cultural and economic agreements signing ceremony at the Elysee Palace in Paris, France, January 28, 2016.REUTERS/Stephane De Sakutin/Pool/Files - RTX2SAMN

After the United States issued a second license to Airbus to sell 106 planes to Iran on Nov. 21, the French aircraft manufacturer once again made headlines in Iranian media on Nov. 23. The US government’s green light to the agreement is a result of the nuclear deal, which lifted nuclear-related sanctions on Iran in return for curbs on its nuclear program.

On Sept. 21, Airbus announced that an application to sell 17 airplanes to Iran was approved by the US Department of Treasury’s Office of Foreign Assets Control (OFAC). Although Airbus is based in France, it must obtain OFAC approval to sell planes to Iran because at least 10% of the components used to build the planes are made in the United States. Airbus’ first application for a license to sell passenger jets was for the jets Iran most urgently needs. Tehran is determined to breathe new life into its aging fleet. On the same day, US aircraft manufacturer Boeing received authorization by OFAC to sell 109 passenger jets to national carrier Iran Air.

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