U.S. Gives Airbus Go-Ahead to Send 17 Airliners to Iran -- Update

By Robert Wall and Doug Cameron 

Airbus Group SE on Wednesday said the U.S. government had approved the transfer of jetliners to Iran Air in one of the highest-profile trade breakthroughs since nuclear sanctions were lifted on the Islamic Republic in January.

Airbus said it had been cleared to transfer 17 planes to Iran Air. Some of those deliveries may occur as early as this year, a spokesman said.

Airbus rival Boeing Co., the world's largest plane maker by deliveries, said, "We believe their license application was submitted prior to our similar request and that the government follows a 'first in, first out' policy. We look forward to receiving our license from the government shortly."

Iran this year announced multibillion-dollar deals with Airbus and Boeing to kick off a fleet renewal program after years of sanctions. The country's airlines operate some of the oldest plane fleets and face restrictions on flying to some markets because of the age of the equipment.

The Airbus deal had a list price value of $27 billion and included aircraft as diverse as Airbus single-aisle planes and 12 of its flagship A380 superjumbos, which carry a list price of $432.6 million each, though buyers typically get discounts.

The license approval from the U.S. government allows Airbus to transfer A320 single-aisle planes and A330 widebodies to Iran Air. Airbus sought the approvals to expedite the process. The spokesman said the Toulouse-based plane maker expected the U.S. to green light the second license in the coming weeks.

Write to Robert Wall at [e-mail] and Doug Cameron at [e-mail]

(END) Dow Jones Newswires

September 21, 2016 11:35 ET (15:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.