Boeing has confirmed the signing of a Memorandum of Agreement (MOA) with Iran Air, expressing the airline’s intent to purchase Boeing commercial passenger jetliners, said the world’s largest plane maker.
The proposed deal could be the biggest a U.S. manufacturer has made with the Islamic republic since the easing of sanctions. After months of talks, Boeing signed the tentative agreement to sell jetliners to Iran, in a deal that could be worth up to $25 billion.
Boeing is one of the many plane makers eyeing the Iranian market and Iran is considered one of the most promising growth markets for plane makers because decades of sanctions have left the country with some of the world’s oldest airliner fleets.
State-owned Iran Air on Monday said it planned to introduce 737 and 777 planes pending approval from its government and the U.S. The planes, at least partly acquired through finance leases, would include Boeing’s newest long-haul plane, the 777-9, an airline official said. The model isn’t due to enter service until the turn of the decade.
The transaction also would include Boeing 777-300ER long-range jets, a plane Boeing has been struggling to sell to sustain production until the replacement 777-9 is ready toward the end of the decade. The U.S. has maintained sanctions on Iran’s airlines due to fears that they may be supporting terrorism. The Iranians deny the charge.
The Chicago-based plane maker said, “Boeing will continue to follow the lead of the U.S. Government with regards to working with Iran’s airlines, and any and all contracts with Iran’s airlines will be contingent upon U.S. Government approval.”