ATR in Talks With Alternative Buyers for 8 Iran Planes

EghtesadOnline: Italy’s aerospace giant Leonardo SpA says ATR, which it co-owns with France’s Airbus SE, is in talks with alternative buyers for the remaining aircraft in a €1 billion ($1.6 billion) deal with Iran, which it can no longer deliver due to sanctions.

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11 September 2018

“We are pretty confident that we will finalize the reallocation to other countries” by the end of this year, Chief Executive Officer Alessandro Profumo said in an interview with Bloomberg TV at the Ambrosetti Forum in Cernobbio, Italy.

Thirteen new generation ATR 72-600 aircraft ordered by Iran in 2016 have already been delivered, while “eight remain and will be allocated elsewhere”, Profumo said.

Iran’s flag carrier Iran Air has also received three brand new jets from Airbus to date, according to Financial Tribune.

ATR does not expect “any meaningful impact” on the company and Leonardo from sanctions imposed by the US on Iran, given the reallocation. Leonardo has no other deals with Iran, Profumo said.

The ATR joint venture “is performing well”.

The aerospace and defense market “is expected to grow over the next five years in a range of 6%,” Profumo said. “Our target is to grow in line with the market.”

His nonchalance comes as Reuters reported in July that ATR was urging the administration of US President Donald Trump to unblock the export of the remainder of planes ordered by Iran, warning of “serious damage” to its finances from the breakdown of deals negotiated with Washington’s approval before a change of foreign policy.

The latest batch of ATR planes landed in Tehran’s Mehrabad International Airport on August 5.

Deliveries of ATR turboprops were halted in May after the United States, which must approve exports of planes containing over 10% US parts, withdrew from a 2015 international nuclear deal with Iran.

Although Washington announced a 90-day wind-down period for business conducted under the accord, aircraft deliveries halted after the US Treasury said it would revoke export licenses.