Tuesday said it had signed a tentative agreement to sell jetliners to Iran, in what would be one of the Islamic republic’s biggest deals with a USA manufacturer since trade sanctions on Tehran were eased.
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Boeing has reached a tentative agreement to sell passenger planes to Iran’s state-run carrier, the aircraft maker said Tuesday, in the first potential major USA deal with Tehran since a nuclear accord a year ago lifted sanctions.
Final approval is needed from the US government because remaining sanctions now ban the use of dollars in trade with Iran.
Chicago-based Boeing didn’t immediately respond to a request for comment, but the figure would be on par with a sale already made by its European rival Airbus to Iran.
It said the multi-country agreement on Iran’s nuclear program reached last summer allows “civil aviation companies, including American companies, to pursue legitimate commerce with Iran”.
The transaction would be worth as much as $25 billion, with Iran buying at least 100 commercial jets for its state-owned airline.
Talks between Iran and Boeing have progressed for months and face challenges on both ends.
However, Boeing will have to vigorously fight for space in the Iranian air budget given that Airbus is also on the brink of a closing a $27 billion aircraft supply deal with Iran.
Iran’s supreme leader, Ayatollah Ali Khamenei, has been openly wary of allowing greater business footholds for USA firms.
Iran had been an global pariah prior to the Iran nuclear deal reached in 2015 and the U.S. -Iran relationship remains one of mutual distrust, with the U.S. maintaining extensive sanctions on Iran. Boeing must additionally take into account a political backlash in the US, given Iranian leaders’ penchant for anti-American rhetoric.
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“While some politicians may take issue with this sale, it seems the administration is supportive of the transaction and that this should be sufficient to permit it to go forward despite some complaints”, Jefferies said.
