US aerospace giant Boeing has signed a tentative deal to sell passenger jets to Iran, in what would be the biggest business deal between the USA and Iran in 37 years.
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However, the Chicago-based manufacturer said that it signed the Iran Air agreement “under authorizations from the USA government following a determination that Iran had met its obligations under the nuclear accord reached last summer”. The agreement between Airbus and Iran requires US approval, and if Iran cancels the Boeing agreement there could be significant pressure for OFAC to deny the sale of the Airbus planes to the Islamic Republic.
Iran’s transportation minister said earlier Tuesday a possible deal between the Islamic Republic and Chicago-based Boeing could be worth as much as $25 billion.
A deal between European aerospace firm Airbus and Iran Air – announced in January – is still waiting for approval from regulators in the USA where some of Airbus’ parts are made. That comes after several Iranian airlines recently indicated that they wanted to update their fleets with both medium-haul and long-haul jets.
That accord eased financial and oil-related sanctions, and allowed for the case-by-case sale of commercial passenger aircraft and parts to Iran.
Iran has agreed to purchase 100 new Boeing (NYSE: BA) aircraft to replace it´s aged passenger planes, pending final approval by US Treasury authorities, the company said.
It is also not certain that Iran’s supreme leader Ayatollah Ali Khamenei will approve the purchase.
Boeing has announced that it has reached agreement to sell 100 aircraft to Iran Air in a deal that could be worth $25bn (£17bn) at list prices.
Two senior Republican members of Congress raised concerns last week that the sale could threaten USA national security. Two U.S. Congressmen, Jeb Hensarling (R., Texas) and Peter Roskam (R., Ill.), last week sent a letter to Boeing expressing concern a plane deal could aid Iran’s military.
Boeing isn’t the only manufacturer to capitalize on the bonanza of new Iranian aircraft orders.
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In Boeing’s case, there are also questions about how Iran Air will pay for the planes, given that US banks are still barred from doing business in Iran and from processing dollar-based transactions for Iran.
