Leonardo in talks with alternative buyers for Iran ATR planes

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 €1bil (US$1.6bil) deal with Iran, which it can no longer deliver due to sanctions.

“We are pretty confident that we will finalize the re-allocation 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.

Profumo said 12 new generation ATR 72-600 aircraft ordered by Iran in 2016 have already been delivered, while eight remain and will be allocated elsewhere.

The company doesn’t expect “any meaningful impact on ATR and Leonardo from sanctions imposed by the US to punish the Iranian regime, given the reallocation. Leonardo has no other deals with Iran,” Profumo said.

The ATR joint venture “is performing well.”“

Separately, Profumo also said he is happy with the current state of Leonardo’s helicopter division, which underwent a downturn last year that prompted a guidance revision and stock drop.

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.” — Bloomberg