U.S. aircraft-maker Boeing (BA
) and its European competitor Airbus (EADSY
) may see sales of jets to Iran take off now that the U.S. government has given the companies clearance to sell to the Middle East nation.
Boeing and Airbus received the go ahead Thursday from the U.S. Treasury Department to sell their products for commercial passenger use to the nation following the U.S.-Iran nuclear deal
passed earlier this year that calls for loosing sanctions on Iran.
“We have issued the first two licenses for the export of certain commercial passenger aircraft to Iran under this new policy — to Boeing and Airbus. These licenses contain strict conditions to ensure that the planes will be used exclusively for commercial passenger use and cannot be resold or transferred to a designated entity,” a Treasury spokesperson told FlashRatings.com.
But turbulence remains between the competitors, and the news comes at the same time that Boeing hit back
at its French counterpart over $17-billion in “illegal” government subsidies.
A World Trade Organization compliance panel ruled that the E.U. failed to take action on the subsidies and gave additional money to subsidize the A350 widebody jet.
“The WTO previously found that essentially no model of the entire Airbus fleet would exist today – including the A300, A310, A320, A330, A340 and A380 – were it not for the illegal subsidies provided by the European governments,” said Boeing in a press release date Thursday.
Boeing's share price bumped up slightly
on Thursday in midday trading to $131.93 while Airbus' closed up at 53.72 pounds.