ATR delivers jets to Iran ahead of U.S. sanctions

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

European turpoprop maker ATR delivered five more airliners to Iran Air over the weekend, hours before further U.S. sanctions against the Islamic Republic come into effect.

Iran Air announced the arrival of the additional planes Sunday. ATR confirmed the handover Monday and said the transaction was carried out in full compliance with U.S. rules.

The five planes are part of a 20-plane order the Iranian flag carrier placed in 2017 with ATR, a joint venture between Airbus SE EADSY, +0.89% and Italy’s Leonardo SpA (LDO.MI) that is based in Toulouse, France. Eight of the planes had been delivered before President Trump in May pulled the U.S. out of the Iranian nuclear accord. That deal, finalized in 2015 between Iran and six global powers, lifted sanctions on the Middle Eastern country in return for Tehran agreeing to curb its nuclear program.

Mr. Trump’s decision in May effectively voided licenses that plane makers and others had for their dealings with Iran. Washington gave businesses 90 days to wind down their activities with Iran.

Plane deals were among the highest profile transactions between Iran and western companies.

Boeing Co. BA, -0.37% the world’s largest aircraft maker, signed agreements to sell 110 planes to Iranian carriers. The deals were valued at roughly $20 billion before industry standard discounts. The Iranian planes haven’t yet featured in the Chicago-based plane maker’s production plans, Boeing has said.

Airbus had delivered three planes for Iran Air under a pre-discount $20 billion deal for 100 planes. It has suspended further handovers. Both Airbus and Boeing have said they would comply with U.S. sanctions rules.

ATR had warned that without the deliveries it could be at risk of missing a full-year target of delivering 80 planes this year.

Write to Robert Wall at [email protected]

Dow Jones Newswires

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