Airplane manufacturers Boeing and Airbus will lose nearly $40 billion in business because sanctions on Iran will be reinstated in the wake of President Donald Trump’s decision to withdraw the United States from the Iran nuclear agreement.
According to The Washington Post, the two companies had signed agreements with Iran Air and Aseman Airlines, deals that will no longer be valid.
Airbus signed a contract in December 2016 to sell Iran Air 100 planes, a deal worth about $19 billion, according to the Post. Three of the 100 planes that were part of the agreement have been delivered. Boeing also signed a deal with Iran Air for 80 planes at a cost of $17 billion, and later agreed to sell 30 planes to Aseman Airlines for $3 billion.
“As we have throughout this process, we’ll continue to follow the U.S. government’s lead,” Boeing spokesman Gordon Johndroe said Tuesday.
Added Airbus communications chief Rainer Ohler, “We’re carefully analyzing the announcement and will be evaluating the next steps consistent with our internal policies and in full compliance with sanctions and export control regulations.”
Trump announced Tuesday he will pull the U.S. out of the Iran deal, which was signed in 2015 between Iran, the U.S., Russia, China, and the European Union, because he said it is not doing enough to prevent Iran from obtaining a nuclear weapon.
After the announcement, Treasury Secretary Steven Mnuchin said the licenses held by Boeing and Airbus would be revoked because of the sanctions.
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