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IranAir CEO says no problems financing plane deals

8 February 2018 17:20 (UTC+04:00)
IranAir CEO says no problems financing plane deals

By Trend

IranAir is not having problems financing plane purchases from Boeing and Airbus but deliveries could be hampered if the United States does not extend export licenses, Chief Executive Farzaneh Sharafbafi said on Thursday, Reuters reports.

She told Reuters on the sidelines of a Euromoney Iran conference in Paris that the national carrier would receive its first Boeing passenger jet later this year, after nuclear-related sanctions were lifted in 2016. IranAir expects to start receiving custom-built Airbus aircraft next year.

“The delivery of Boeing will be in 2018 and Airbus in 2019.We have no problem with the financing of the deals,” Sharafbafi said.

IranAir has agreed to buy 80 aircraft from Boeing and 100from Airbus but only a handful have been delivered amid what bankers describe as a shortage of financing for Iran, due to the reluctance of Western banks to risk U.S penalties.

Industry sources say another key sticking point is thatIranAir has been slow to pay deposits, which are needed for Boeing and Airbus to start building new jets.

Airbus sales chief John Leahy said in January that its schedule for deliveries to Iran could slip.

Boeing has yet to publish the Iran order officially, a step which the company says it can only take if it has a down payment. So far IranAir has received three brand-new Airbus jets originally built for other airlines that could not take delivery, and 8 new ATR turboprops.

It is able to purchase planes under the 2015 deal to open up trade in exchange for curbs on Iran’s nuclear activities.

Even after the accord, all exports of Western aircraft to Iran need licenses from the U.S. Treasury because of the number of U.S. parts. Current licenses expire at the end of 2020 and would need to be extended to complete the planned deliveries.

“Whether the licenses will be renewed, we have to wait and see: it depends on the United States,” Sharafbafi said.

Iran has accused the United States of dragging its feet over the steps needed to implement the nuclear deal, which has been publicly criticized by U.S. President Donald Trump.


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