Balli Aviation Limited, a UK based company, is pleased to confirm that today it has concluded a comprehensive settlement with the US Departments of Commerce, Treasury, and Justice. Details of the settlement were published earlier today by these U.S. government agencies.

The settlement follows alleged violations as to the use, or intended use, of six Boeing 747 passenger aircraft owned by Balli Aviation subsidiaries and affiliates since 2005/6. Three of the aircraft in question were dry-leased to an Armenian registered company, Blue Airways, which subsequently made them available for use by an Iranian private airline, Mahan Air. The other three aircraft have not been placed into service.

The U.S. authorities viewed Mahan’s involvement and the manner of its access to the capacity of the aircraft, as well as some of the steps taken by Balli Aviation to recover the aircraft and mitigate damages, to have breached US export rules. The settlement does not suggest that Balli Aviation sold, or intended to sell, these aircraft to Blue Airways or Mahan in breach of US sanctions.

Balli Aviation is a British company and there are no British or EU restrictions on commerce in civil aviation with Iran.

This settlement ensures that Balli Aviation and all of its affiliates remain free to continue to trade in all US goods and services. Neither Balli Aviation nor any of its affiliates or subsidiaries are placed on any US-sanctioned person or entity lists. No directors, officers or employees of Balli Aviation, or any of it affiliates, have assumed personal liability or found to be in breach of the US laws pursuant to this settlement. This comprehensive settlement is meant to draw a line under the US interest in this case and close the matter.

Balli Aviation and its affiliates employ stringent controls to ensure compliance across their global operations and have cooperated with the US investigation.