Iran's flag carrier finalized a major deal with U.S. plane maker Boeing
Co. to buy $16.6 billion worth of passenger planes Sunday in one of the
most tangible benefits yet for the Islamic Republic from last year's
landmark nuclear agreement.
Iran
Air's deal for 80 jetliners is the biggest agreement Iran has struck
with an American company since the 1979 revolution and U.S. Embassy
takeover. It has the potential to transform Iran's creaking and
accident-prone aviation industry, which has been hobbled by years of
sanctions.
Those curbs have prevented the country from buying new planes from
Chicago-based Boeing and European rival Airbus, and in many cases made
it difficult for Iranian airlines to secure much-needed spare parts.
The deal covers 50 single-aisle 737 Max 8s, a soon-to-be-introduced version of Boeing's existing narrow-body 737 line.
It also includes 30 777s, a wide-body, twin-engine plane typically used
on long-haul routes that is popular with other Persian Gulf carriers
such as Dubai-based Emirates. Half of the order will cover the 777-300ER
version, while the rest will be of the 777-9 model still under
development.
Iran's state-run IRNA news agency said the planes would be delivered
over the next decade. The first will start to arrive in 2018, Boeing
said.
In September, Washington granted permission to Boeing and Toulouse,
France-based Airbus to sell billions of dollars' worth of aircraft to
Iran. Airbus needed U.S. approval because at least 10 percent of its
planes' components are of American origin.
The U.S. and other world powers agreed last year to lift crippling
sanctions on Iran in exchange for it curbing its nuclear activities. The
U.S. still maintains extensive sanctions on Iran for activities
unrelated to its nuclear program.
President-elect Donald Trump and several Republican lawmakers have
criticized the nuclear deal, but it's unclear whether they would scrap
the agreement, which was reached with Britain, France, Germany, Russia
and China.
Iranian Transport Minister Abbas Akhoundi, who attended the signing
ceremony, said it was a "historic" day for Iranian aviation and that the
deal would create 8,000 jobs for Iranians.
"The deal has a clear message for the world: we support peace and
security as well as the growth of Iran based on a win-win policy," he
was quoted as saying. "We hope that despite changes in the U.S.
administration, the country will remain loyal to its commitments.
The Republican-led House of Representatives last month voted to bar
commercial aircraft sales to Iran in a move that could block the Boeing
deal. That legislation must still pass the Senate, where it will likely
face opposition from Democrats. U.S. President Barack Obama has said he will veto the bill if it reaches his desk before he leaves office on Jan. 20.
Boeing made a point of saying it worked closely with the U.S. government
throughout the deal-making process and will continue to "follow all
license requirements." The Iran Air deal "will support tens of thousands
of U.S. jobs" linked to the 777s alone, it said.
The plane maker said the deal value was based on list prices, though in
practice customers typically negotiate discounts for bulk orders.
Most of Iran's aging fleet of 250 commercial planes was purchased before
1979, and as of June only 162 were operational, with the rest grounded
because of a lack of spare parts. Iran Air, whose website lists a fleet
of 43 planes, offers direct flights to over 30 international
destinations, including London.
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