Boeing is selling 100 jets to Iran in historic deal

Boeing

Boeing has signed a historic deal that will send 100 jetliners to Iran Air. It’s the first major deal between a US and Iran company since nuclear-related sanctions were lifted in early 2016.

Boeing declined to say how many aircraft are part of the deal, but Iran’s state media has said the country’s flag carrier will receive 100 new jetliners.

Iran’s current fleet of airliners are considered among the most dangerous in the world. They are also not surprisingly some of the oldest planes in the sky.

The agreement still needs to be approved by the US government. There are still some sanctions in place which could derail some or all of the deal.

The recent accord eased financial and oil-related sanctions and allowed for the case-by-case sale of commercial passenger aircraft and parts to Iran.

The primary US trade embargo against Iran remains in place. For example, the US denies Iranian banks the ability to clear US dollars through New York or do business with American financial institutions. That fact could hurt financing options for the deal.

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Boeing said Tuesday that the US government had authorized its negotiations with Iran. The company says it is following the US government’s lead in finalizing the deal. “Any and all contracts with Iran’s airlines will be contingent upon U.S. government approval,” it said.

Iran Air recently announced a massive deal for 118 aircraft that will be delivered by Airbus.