US fines Britain-based Balli Aviation for illegally exporting Boeing 747 jets to Iran

Balli Aviation Limited, a unit of Balli Group Plc, based in the United Kingdom, has pleaded guilty in a court in the United States to having exported illegally Boeing 747 passenger aircraft from the United States to Iran.

The issue involves 6 Boeing 747 Jumbo passenger aircraft that the subsidiaries and affiliates of Balli Aviation Limited exported to Iran. Of these, Balli Aviation leased 3 Jumbo jets to a United States-based airline, which made them available to Mahan Air, a private airline in Iran, to be used for flights in and out of the Iranian capital of Tehran. The other 3 plane, however, were not put into service.

According to the United States Justice Department, Balli Aviation Limited has agreed to pay $2 million in criminal fine. In addition, the company will be put on corporate probation for 5 years.

In a statement, the US Justice Department said Balli Aviation Limited and its parent company have also consented to pay $15 million in civil penalties by way of settlements with the US Treasury Department and the US Commerce Department. However, out of the $15 million in civil penalties, $2 million could be waived if Balli Aviation does not violate any rules on export control in future.

In the statement by the US Justice Department, Channing Phillips, acting attorney for the District of Columbia, explained that Balli Aviation Limited was charged with violating the embargo imposed by the United States against Iran without first getting the US government’s export licence or authorisation required under the law. The charges against Balli Aviation, Channing Phillips added, reflects the US government’s “commitment to enforce vigorously” its laws against companies which illegally buy aircraft from the United States on behalf of customers in Iran.

Balli Aviation Limited said in a statement that the authorities in the United States regarded Mahan Air’s involvement and the way it accessed the capacity of the Boeing 477 aircraft, as well as certain measures taken by Balli Aviation to recover those planes and alleviate damages, as violating the export regulations of the US.

It may be noted that the United States has imposed stringent restrictions on exports to Iran – one reason is the fears that the goods exported could be used by Iran for military purposes. The United States and Iran have been at odds for many years now.

Lord Norman Lamont, former Chancellor of the Exchequer of the United Kingdom, is a non-executive director of Balli Aviation Limited. Balli Group Plc, headquartered in London and the parent company of Balli Aviation, is engaged in finance and commodities trading.