Tag Archives: Airbus

New Iran Sanctions Disrupt US and Overseas Business

Treasury Secretary Steven Mnuchin

The effect of the US pulling out of the Iran nuclear agreement will not only reverberate in Iran. US companies will also feel the bite of newly imposed economic sanctions on the regime of Ali Khamenei, Iran’s Supreme Leader.

The US withdrawal from the agreement will force the US government to revoke existing licenses allowing for US companies to do business with Iran. Treasury Secretary Steven Mnuchin said on Tuesday that licenses held by Boeing Company and Airbus Group, Boeing’s European competitor, will be nullified by the US withdrawal from the agreement.

“The existing licenses will be revoked,” Mnuchin said to reporters.

The company responded by saying it will consult with the government on what their next move should be.

“As we have throughout this process, we’ll continue to follow the U.S. government’s lead,” Boeing commented.

Airbus is also dependent on licensing from the US to sell its airplanes to Iran due to the US-made parts Airbus uses in its aircraft.

There will be waivers and exemptions made under certain conditions for certain products and countries, but those conditions were not discussed by Mnuchin.

Mnuchin added that the new sanctions will also seriously limit the sale of oil by Iran, which sells about 5 percent of the world’s oil, making it the fifth largest oil producer in the world. He said that there will be a 6-month grace period to allow countries to finish up existing contracts and implement “significant reductions” in the amount of crude oil they purchase from Iran.

The secretary said he does not believe the price of oil will rise by much since he expects other countries will respond to the new sanctions with increased oil production.
Mnuchin said that the goal of the new sanctions is to force Iran to come to the table to renegotiate the Iran nuclear deal.

Boeing Dreamliners and Airbus A380 to Join British Airways Fleet

When two Boeing 787s and the first Airbus SAS A380 arrive in England later this month British Airways will become the first European airline to fly the two wide-bodied liners as part of its line-up of planes.

The Boeing 787s are due to join British Airways (IAG) in two weeks on June 26th and 27th, and the Airbus one week later, on July 4th. IAG is spending 5 million pounds ($7.8 million) upgrading its subsidiary’s fleet.

The Dreamliners were originally scheduled to arrive in the UK in May, but due to issues with the batteries Boeing had to delay deliveries until the problems were resolved. British Air said that the routes of the planes will be “unveiled shortly.” But they did confirm that the A380 will have the route to Los Angeles beginning on October 15, while another route will be added to Hong Kong on November 15.

“Over the next 12 months, we will take delivery of new long-haul aircraft at an average rate of one every two weeks,” BA Chief Executive Officer Keith Williams said.

The A380 is more fuel efficient, and the 787 is made of composite plastic, making both planes more environmentally friendly while also helping to keep costs to a minimum. The more expensive-to-operate Boeing 747-400 jumbos will be phased out as more up-to-date planes join the fleet.