US begins unblocking jetliner sales to Iran

The US has issued licences to Airbus and its US rival Boeing to sell jets to Iran, the US Treasury revealed.

Europe’s Airbus said yesterday that it had received US Treasury approval to begin exporting jets to Iran, under a deal for more than 100 jets struck in January.

Hours later, Boeing, which had been behind Airbus in the queue for permits because its matching deal for over 100 jets came six months later, said it had received a sales licence and remained in talks with IranAir.

The move removes a key hurdle to one of the most high-profile deals between Iran and foreign companies since last year’s agreement between Tehran and world powers to open up trade in exchange for curbs on the country’s nuclear activities.

But major questions remain over the financing of deals between Iran and Western planemakers that threaten to obstruct deliveries of the planes, in what is seen as a test case for Western trade and investment following the nuclear deal.

“This sends a strong signal but it resolves only half the problem. The challenge to raise financing remains,” Bertrand Grabowski, a managing director at German’s DVB Bank, said.

Foreign banks are reluctant to finance the aircraft deals, fearing they could fall foul of remaining US sanctions that prohibit the use of its financial system for Iranian business, something difficult to avoid in a complex global supply chain.