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Airbus, Boeing Approved to Sell Aircraft to Iran

IranAir to purchase up to 80 aircraft, under strict limitations.

Airbus and Boeing could soon be doing business in new territories after the U.S. Treasury Department gave both manufacturers permission to do business in Iran. NPR reports both companies have been issued licenses to export commercial aircraft to the once-sanctioned nation under strict conditions outlined by the federal agency.

Under the agreement, both aircraft manufacturers must ensure that the aircraft sold to Iran must be used for commercial passenger transportation only. In addition, the aircraft must not be repurposed for other situations, or resold to any other “designated entity.” Before approval, the Treasury Department worked with Airbus and Boeing to understand what technology would be on the aircraft while checking to ensure nobody involved in the transaction was on a sanction list.

The first deal between Boeing and IranAir was first announced in June, with the Chicago-based manufacturer set to sell as many as 100 commercial aircraft to the flag carrier. Under the revised agreement, Boeing could sell up to 80 aircraft to IranAir at a value of up to $20 billion.

In addition, French manufacturer Airbus would sell 17 aircraft to IranAir, at an unknown value. While Airbus is a European company, their deal with the flag carrier was held up by the Treasury Department because the manufacturer relies on avionics and technologies developed in the United States.

The new aircraft sales are part of a bigger deal with Iran, in which the Middle Eastern nation agreed to stop pursuing a nuclear program in exchange for trade provisions. The aircraft orders will reflect the first new commercial Boeing aircraft for IranAir since 1979.

[Photo: WIKIMEDIA COMMONS]

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Sabai September 22, 2016

Will Iran finally retire its 747SP? I used to see it frequently at NRT years ago.