Boeing Co (BA.N) said it had received on Wednesday a US government licence allowing it sell jetliners to Iran, ending a decades-long ban and matching European rival Airbus (AIR.PA), which also said it received licence approval.
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European airplane manufacturer Airbus announced the licence from the US Treasury’s office of foreign assets control.
In June, Boeing reached a Memorandum of Agreement with Iran Air on jets sales and applied for the U.S. government license that would allow the company to complete the deal.
Iran’s nuclear deal with world powers, which limits its enrichment of uranium in exchange for the lifting of some worldwide sanctions, specifically allowed for the purchase of aircraft and parts.
Even though Airbus is a European company, it sources numerous components used to build its planes from USA suppliers.
Airbus said it had been cleared to transfer 17 planes to Iran Air.
With the sales set to go ahead, Iran a country of 80 million, would be able to start rebuilding its aging fleet of Boeing and Airbus planes and other secondhand aircraft acquired clandestinely from other countries.
As the Obama administration moved to begin allowing the sales, Republicans blasted USA policy toward Iran.
“Commercial aircraft are one of the very few products US companies are allowed to sell to Iran”.
Republican Reps. Peter Roskam of IL and Jeb Hensarling of Texas wrote a joint letter in June to Boeing arguing that Iran uses commercial aircraft to transport weapons, military parts, rockets and missiles to US enemies around the world.
Some of those deliveries may occur as early as this year, a spokesman said.
The order could be valued at about $ 25 billion, said to The Cubic Lane in June a source close to the matter who requested anonymity, but that amount could change by the finalization of the contract, airlines often get strong discounts from manufacturers.
“We applied for a USA government license that would allow us to complete the sales anticipated in the MOA”, said Boeing spokesman Marc Sklar.
A second license for more planes is expected to be granted in the coming weeks, Dubon said. Boeing followed with its own announcement later.
Under Boeing’s deal, Iran Air will buy 80 aircraft with a total list price of $17.6 billion, with deliveries beginning in 2017 and running until 2025.
Iran this year announced multibillion-dollar deals with Airbus and Boeing to kick off a fleet renewal program after years of sanctions.
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In a written statement, Boeing said it remains in talks with the airline over the terms of a Memorandum of Agreement signed in June covering what at the time remained an undisclosed number of jets.
