OFAC APPROVES EXPORTS TO IRAN AIR

October 3, 2016

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) made history on September 21, 2016 when it approved the sale of aircraft by Boeing and Airbus to Iran Air.  The OFAC license issued to Airbus, which is the first of two applied for, gives authorization for “short-term” deliveries of seventeen A320 and A330 aircraft to Iran Air.  The OFAC license issued to Boeing allows it to complete negotiations with Iran Air for the purchase of up to eighty aircraft of various types, including 737s, 777s and 787s. Boeing has also agreed to help arrange the lease of another twenty-nine of its aircraft to Iran Air.

Airbus and Iran Air recently signed a contract covering orders for twenty-two airplanes from the current A320 family, twenty-four A320neo-family airplanes, twenty-seven of the current A330 family, eighteen A330-900s, sixteen A350-1000s and twelve A380s.  Boeing will reportedly deliver up to one hundred and nine aircraft to Iran Air.  These new developments are made possible by the Joint Comprehensive Plan of Action, which was implemented in January and mandates a significant reduction in Iran’s nuclear ambitions together with regular access to Iranian nuclear facilities by the International Atomic Energy Agency.  Boeing’s contract will be the first aircraft order from an Iranian airline since the U.S. government placed sanctions on Iran following the country’s 1979 Islamic Revolution. It would also be the largest commercial deal between U.S. and Iranian companies since January, when the Obama Administration lifted sanctions against Iran.

If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).

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