Boeing Nixes $20 Billion in Contracts with Iran

Responding to the Trump administration’s economic sanctions on Iran, the aviation giant Boeing has announced that it is pulling out of a $16.6 billion contract to supply Iran Air, the national flag carrier, with planes. A $3 billion deal with Aseman Airways is also expected to fall through as the American companies, including General Electric, the supplier of the engines, adhere to the new Trump sanctions. One of the first major deals the Iranians cut when the agreement with the Obama administration and Western nations went into effect was the purchase of airplanes to replace the aged Iranian fleet. The quashing of the contract will clearly be a major setback for Iran Air.