Boeing, Airbus rivalry for Iran’s market

Boeing, Airbus rivalry for Iran’s market ...
en.mehrnews.com 06/06/2016 Auto

Keywords:#Airbus, #American, #Aviation_Companies_Association, #Boeing, #Economy, #En.mehrnews.com, #European, #France, #Iran, #Iran_Air, #Iranian, #MNA, #Maghsoud_Asadi_Samani, #News, #OFAC, #Office_of_Foreign_Assets_Control, #SAS, #Samani, #US


News ID: 3676725 - Sun 5 June 2016 - 14:09
Economy
TEHRAN, Jun. 05 (MNA) – An aviation official has outlined the intense competition between Boeing and Airbus as a barrier to purchase of aircraft from the European company.
Touching upon the problems mentioned by Airbus for aircraft sales to Iran, Secretary of Iran's Aviation Companies Association Maghsoud Asadi Samani said “unfortunately, the strong and head-to-head competition between America’s Boeing Company and France’s Airbus SAS has brought about difficulties to selling airplanes to Iran.”
Asadi Samani noted that Airbus requires OFAC license to sell aircraft to Iran adding “the license is only issued by the US and given that American are seeking to pave the way for Boeing to enter the Iranian market, negotiations between Iran Air and the international companies will continue until a resolution is reached.”
The official referred to the ban on trading with US dollar for Iran asserting “as a result, Airbus is not allowed to make a deal with Iran until all banking complications are addressed.”
“Both large aircraft manufacturers are looking forward to gaining a share of the Iranian market,” he continued.
Secretary of Iran's Aviation Companies Association said Iranian airliners are seeking to fix insurance problems for foreign financing as a prerequisite to purchasing aircraft.
“Buying airplanes brings high costs which is not affordable by private airlines,” noted the official emphasizing that the action cannot be carried out by relying on domestic resources for not being cost-effective.
Asadi Samani went on to underline that “Iranian companies are trying to import younger aircraft in order to offer better services to passengers.”
He stressed that the resolutions taking place in banking sources can provide room for the presence of Iranian airlines in the world market.
Trade and finance sanctions imposed against Iran by the US have forced all entities inside America together with all companies’ subsidiaries in other countries to obtain written permission of the Office of Foreign Assets Control (OFAC) for exchanging money, goods and services with Iran.
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