Boeing says it has signed a historic agreement to sell jetliners to Iran Air, the first major deal between a US company and Iran since nuclear-related sanctions were lifted earlier this year.
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Earlier on June 19, Ali Abedzadeh, head of Iran’s Civil Aviation Organization, said that Iran Air reached an agreement with Boeing for purchase of 100 aircraft.
In a separate statement, Boeing confirmed that an initial agreement had been reached, adding that “any and all contracts with Iran’s airlines will be contingent upon USA government approval”.
Despite the uncertainties such as USA government approval of the deal and financing of the transaction, Boeing Co (NYSE:BA) sees a promising market in Iran.
Such an order would be worth about US$11 billion at list prices if Iran Air bought only Boeing 737 single-aisle jetliners, and perhaps twice that much if it included a significant number of twin-aisle planes such as the 777 or 787 Dreamliner.
Two U.S. congressmen, Jeb Hensarling (R-TX) and Peter Roskam (R-IL), sent a letter last week to Boeing expressing concern that the plane deal could aid Iran’s military actions.
The tentative agreement, which marks Boeing’s first sale to Iran since its Islamic Revolution in 1979, resulted from the nuclear accord reached with the country previous year.
In January, Iran reached a preliminary agreement with European aircraft manufacturer Airbus to purchase 118 planes, though that deal is also awaiting approval from the U.S. Treasury. American officials had said as recently as last weekend that the sale would need permission from the U.S. Treasury.
The agreement was achieved following several rounds of talks between Iran Air (the Islamic Republic’s flag carrier) and Boeing officials, Abedzadeh said. However, American lawmakers have warned Boeing not to do business there as the Iran deal remains a hot topic in the ongoing presidential election.
U.S. State Department spokesman John Kirby told reporters the agency welcomed Boeing’s announcement and was in close communication with Boeing. The company isn’t discussing the details of the agreement, but an official of the Iranian government has said the deal could be valued at billion.
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Presumptive Republican presidential nominee Donald Trump on Tuesday suggested the “disastrous” Iranian nuclear deal was a set up by Hillary Clinton for business deals with Iran. For the protection of AP and its licensors, content may not be copied, altered or redistributed in any form.
