Iran Says It Reaches Deal With Boeing for 100 Planes
Jennifer Billock June 15, 2016
Iran’s skies are about to be reopened to U.S. airplanes under a new international deal.
For the first time in decades, Iran plans to open its sky to U.S. plane traffic due to an international deal that’s meant to ease sanctions. In order to do so, Iran has begun to make an agreement with Boeing to obtain more than 100 jets for use by IranAir.
So far details of the deal are vague, as it isn’t fully realized. But it’s a milestone for Boeing, which hasn’t been legally able to sell jets to Iran for about 40 years. The country was banned from buying U.S.-made planes.
“We have been engaged in discussions with Iranian airlines approved by the U.S. government about potential purchases of Boeing commercial passenger airplanes and services,” a Boeing spokesman said by email to Reuters. “We do not discuss details of ongoing conversations we are having with customers, and our standard practice is to let customers announce any agreements that are reached. Any agreements reached will be contingent on U.S. government approval.”
After all these years of sanctions, though, Iran still has a ways to go to have a fully operational fleet of aircraft. Iranian and Western estimates put the amount of jets needed at a total of about 400, and the U.S. financial system is still off-limits for Iran, leading to some uncertainty over financing that could put some extra strain on the proceedings. The deal could also spur some political unrest.
“It’s grist for the mill for everyone involved,” Richard Aboulafia, an aerospace analyst at Teal Group, said in an interview with Bloomberg. “The Iranians love splashy announcements to use as leverage. Pro-nuclear-deal politicians in the U.S. and Europe love it as proof of opportunity. Conservatives love to use it as a sign of political weakness.”
[Photo: Boeing]
