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Treasury Department Approves Airplane Sales to Iran

by Megan Hill

Oct 13, 2016
Features

The U.S. Treasury Department last month approved airplane sales to Iran for both Boeing and Airbus, issuing both licenses to do business with Iran Air.

The landmark move comes after the United States lifted some sanctions against Iran as part of the 2015 nuclear deal between the United States, Iran and five other countries.

Earlier this year, Boeing signed a memorandum of agreement with Iran Air for the sale of 80 planes. Now with the treasury license, Boeing can complete those sales. Airbus plans to deliver 118 planes — A320s and A330s — to Iran Air as part of an agreement reached in January. Approval for that sale is expected soon.

The Treasury Department approvals were not without contention. Two measures passed by House Republicans in July sought to prevent any Boeing sales to Iran Air, citing concerns Iran could use the planes for the transport of military cargo.

“These licenses contain strict conditions to ensure that the planes will be used exclusively for commercial passenger use and cannot be resold or transferred to a designated entity,” a Treasury spokesperson said in an email to Travel Weekly.

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