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Iran has finalised deal with US to buy 100 Boeing airliners, says Civial Aviation Organisation

The two sides are awaiting approval from US Treasury authorities, according to Iran's Civil Aviation body

By: Reuters | Dubai | Published: June 19, 2016 4:56:29 pm
Iran, US, Boeing, Iran US, Iran US relations, Iran US deals, Iran US aviation deal, iran news, latest news, us news, world news Boeing Co. has signed a deal to sell 100 airplanes to Iran, state-run media reported, a sale potentially worth billions. (Source: AP Photo/Hasan Sarbakhshian, File)

Iran has reached a deal to buy 100 planes from US planemaker Boeing, and the two sides are awaiting approval by US Treasury authorities, the head of Iran’s Civil Aviation Organisation said in remarks published by state media on Sunday.

So far, Boeing has only been granted permission to present its products to IranAir and a handful of other airlines as it tries to catch up with Europe’s Airbus, which won a provisional deal earlier this year for 118 jets worth $27 billion.

Reuters reported on June 6 that Iran was edging towards a historic agreement to buy jetliners from Boeing for the first time since the 1979 Islamic Revolution and that a deal for more than 100 aircraft could be reached fairly soon.

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“Of the 250 (passenger) planes in Iran, 230 have to be replaced,” Ali Abedzadeh, the head of Iran’s Civil Aviation Organisation, told the state-run daily newspaper Iran, adding that a written agreement had been signed with Boeing to buy 100 aircraft.

Abedzadeh said that no precise timeline could be given for the implementation of the deal before an authorisation is issued by the US Treasury Department.

He said Boeing had submitted an official request to the US Treasury for a final permit for the plane sales and “the final contract is to be signed between the two sides after the license has been obtained.”

In January, IranAir agreed in to buy 118 jets worth $27 billion at list prices from Airbus. The deal was conditional on US export licenses because of the quantity of US-built parts.

In comments about the Airbus purchases, Abedzadeh told the Iran newspaper “The final obstacle in this area are only the permits from the US Treasury Department.”

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