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Boeing Nears $25 Billion Deal To Sell Planes To Iran Air

U.S. aircraft maker, Boeing, and Iran’s state carrier, Iran Air, have brokered a tentative deal for the sale of aircraft carriers that could mark the melting of rigid U.S.-Iran ties.

Boeing Nears $25 Billion Deal To Sell Planes To Iran Air

The deal between aircraft manufacturer Boeing and Iran’s national carrier, Iran Air is believed to be past the $25 billion mark and is set to be the biggest between American businesses and the Middle East country since the 1979 Islamic revolution.

The landmark purchase that is currently a subject of government approval will see the Iranian carrier improve their domestic carrying capacity if a Memorandum of Agreement between the two goes through. The Chicago-based plane maker said in an email that the deal was mainly about Boeing commercial passenger planes but maintained that the US government would have the final word.

On its part, Iran Air stated that they sought to acquire Boeing 737 and 777 airliners, and even though there was real progress, there were some approval hurdles yet to be cleared. It is not known how the transactions will close when the approval sails through since U.S banks are yet to be authorized to transact with Tehran. Some US Congress members are also believed to have voiced a hard-line stance on the deal.

Iran Air is seeking to overhaul its aging fleet that currently serves close to 30 domestic and international flights. If the deal goes through, the carrier will modernize operations in an ambitious 10-year plan that could see the return of long distance flights to Asia and the Far East that were halted by massive sanctions.

Earlier this year, Boeing’s competitor, Airbus from France, struck a deal to sell a total of 118 planes believed to be in the range of $27 billion. The deal was subject to approval from the U.S Office of Foreign Assets Control since some of the aircraft’s parts were manufactured by American-based companies.

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