Dubai: Boeing Co. said on Tuesday it has reached an agreement with Iran Air “expressing the airline’s intent” to purchase its aircraft.
The deal, if completed, would be the first major transaction between American and Iranian companies since nuclear related sanctions were lifted in January.
Iran, who is eager to re-establish ties with Western companies, has been negotiating to buy commercial passenger jets from Boeing since April.
In a statement to Gulf News, Boeing confirmed it had signed the agreement with Iran Air that it said was negotiated “under authorisations from the US Government following a determination that Iran had met its obligations under the nuclear accord reached last summer.”
Approval
“Boeing will continue to follow the lead of the US Government with regards to working with Iran’s airlines, and any and all contracts with Iran’s airlines will be contingent upon US Government approval.”
A Boeing spokesperson declined to provide further details on the agreement; however, an Iranian official earlier said the deal could be worth as much as $25 billion.
Iran Air has agreed to buy Boeing 737s and 777s, according to a statement on the Iranian flag carrier’s website.
A final agreement will need to be approved by the US and Iranian governments, Iran Air said. The US government continues to impose sanctions on the country, some dating back to the 1979 Islamic Revolution, despite January’s landmark agreement.
The US government is still blocking Iran from accessing its financial system including the dollar. This could prove to be an obstacle to the Boeing-Iran deal as the manufacturer prices its aircraft in dollars.
“We’re going to have to figure out a way collectively for them to be able to finance the assets,” Boeing Middle East sales Vice President Marty Bentrott said on June 2.
Tuesday’s announcement follows an agreement reached by Iran in January to purchase 118 aircraft valued at $27 billion from European plane maker Airbus. Iran said before January’s nuclear accord that it would need to buy as many as 500 aircraft in the coming years.
