The US Congress takes steps to stop the Iranian aircraft deals

This week, the US House of Representatives has approved two amendments that if passed into law, could force the termination of multi-billion deals that Airbus and Boeing have signed with the Islamic Republic of Iran.

Image copyright: Sri Ramami Kugathasan on planespotters.net

In January this year, Airbus and sister company Avions de Transport Régional announced a MOU with Iran Air for up to 158 aircraft, Boeing has recently announced a MOU for 109.

However, some in the US Congress have expressed their concerns about the possibility for Iran to use these civilian aircraft for military purposes.

Of the amendments, both of which were passed by voice vote, #45 prohibits the Office of Foreign Assets Control (OFAC) from using funds to authorize a license necessary to allow aircraft to be sold to Iran, while #46 ensures Iran will not receive loans from any US financial institutions to purchase militarily-fungible aircraft (i.e. civilian aircraft that can be used for military purposes) by prohibiting OFAC from using funds to authorize the financing of such transactions. 

Though Airbus is not a US-based firm, its aircraft do incorporate US technology and are therefore subject to Washington’s export laws.

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One thought on “The US Congress takes steps to stop the Iranian aircraft deals

  1. […] However, licenses allowing sale of aircraft could easily be withdrawn by Trump if he chose to do so, experts on sanctions have said. This would likely face opposition from U.S. allies and other world powers who were partners in negotiating the deal to lift some sanctions in exchange for Tehran curbing its nuclear program. U.S. Congress has previously tried to stop aircraft deals with Iran Air […]

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