Historic deal between Boeing and Iran Air

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Boeing 737-8 Max
Boeing signs agreement with Iran Air for 80 aircraft

For the first time since 1979, Iran’s national carrier have reached an agreement with Boeing Co. to buy 80 aircraft.  The deal, considering list prices, is set to worth a massive $16.6 billion.

The transaction includes 50 737 MAX 8s, 15 777-300ERs and 15 777-9s.  It was made possible thanks to Obama’s administration lifting of most of the International sanctions on Iran following the agreement on nuclear power.

“Today’s agreement will support tens of thousands of U.S. jobs directly associated with production and delivery of the 777-300ERs and nearly 100,000 U.S. jobs in the U.S. aerospace value stream,” Boeing said in a statement.

Iranian Transport Minister Abbas Akhoundi said the Boeing deal was an important step in restoring Iran’s past role as a regional hub.

“The aircraft will be delivered over 10 years”, said Iran Air Chief Executive Officer Farhad Parvaresh.

The first aircraft is scheduled to be delivered in 2018.

A possible deal-breaker looms

The bill on Iran’s sanctions removal, created by exiting President Obama has met a lot of opposition.

Even though the bill was approved in the House, the U.S. Congress is considering legislation before taking action.  Effectively, they might refrain the Export-Import Bank from financing planes.  Consequently, it would prevent the Treasury from authorizing U.S. bank transactions for a sale.

Newly elected U.S. President Donald Trump has also been against the deal with Iran in the past.  On the other hand, Boeing’s vow to maintain jobs in the country might change his opinion on the matter.

A deal for the competitor as well

Iran Air is also set to finalize a deal with Europe’s Airbus to buy dozens of passenger jets.  Airbus jets are set to arrive in 2017.

Back in January, Airbus also agreed to sell 118 planes to Iran Air in a deal valued at around $25 billion at list prices.

“Airbus is at a more advanced stage when it comes to deliveries,” the official said.