TRUMP’S DECISION ON WITHDRAWING FROM NUCLEAR ACCORD HIT IRAN’S CONTRACTS WITH BOEING AND AIRBUS




Mustafa AY – TDO – 07.06.2018 In the aftermath of 5+1 Nuclear Accord with Tehran administration, USA exhibited smooth transition in its stance on heavy economic embargo, which commenced with 1979 Khomeini’s Islamic Revolution, by alleviatiating the severity of them. Through nuclear accord, officially known as Joint Comprehensive Plan of Action, state-run Iranian Airlines reached a deal worth 17 billion dollars with US Boeing in December 2016, which was followed by another deal worth 3 bilion dollars in April 2017. In accordance with the purchase deal, Boeing was going to make the delivery of 110 new generation airplanes to Iranian Airlines. By the virtue of the deal, Iran stood the chance of modernizing its commercial fleet till US President Donald Trump withdrew from the nuclear convention in the first quarter of 2018. Dennis Muilenburg, CEO of Boeing Company, has asserted that Boeing Company compulsorily cancelled its agreement worth about 20 billion dollars with Iranian Airlines.

Boeing is not the only company with which Iran signed a contract for updating its commercial fleet. Iranian Airlines also reached a purchase deal for 100 new generation airplanes worth about 19 billion dollars with European Airbus. In accordance with the contract, Iran was going to purchase the airplanes, but also spare parts. However, Airbus also had to cancel its contract with Iranian Airlines on the grounds that an Airbus contains 10% US-made spare parts in itself. So, Trump’s decision on withdrawing from nuclear convention seriously halted its business with Iran. Even though Airbus cancelled its contract, the company managed to deliver 3 Airbus to Iranian Airlines.