Arab Today, arab today boeing nears landmark deal to sell planes to iran air
Last Updated : GMT 09:18:07
Arab Today, arab today
Arab Today, arab today

For the sale of passenger planes

Boeing nears landmark deal to sell planes to Iran Air

Arab Today, arab today

Arab Today, arab today Boeing nears landmark deal to sell planes to Iran Air

US aerospace giant Boeing and Iran Air confirmed Tuesday
New York - Arab Today

US aerospace giant Boeing and Iran Air confirmed Tuesday a tentative deal for the sale of passenger planes, in what could prove a landmark for easing in the difficult US-Iran relationship.

The deal, valued as much as $25 billion, would be the largest between a US business and Iran since the 1979 Islamic revolution.

Boeing said it had reached a preliminary agreement with the state-owned carrier as it seeks to check the boxes in a multi-step process overseen at every stage by US regulators.

"Boeing confirms the signing of a Memorandum of Agreement (MOA) with Iran Air expressing the airline's intent to purchase Boeing commercial passenger airplanes," the Chicago-based company said in an email to AFP.

Boeing said "it will continue to follow the lead of the US government" and that "any and all contracts with Iran's airlines will be contingent upon US government approval."

Earlier Tuesday, Iran Air said it had struck an initial deal to buy Boeing 737 and 777 airliners, subject to US government approval.

The order could be valued at roughly $25 billion, a person close to the situation told AFP.

Despite the significant progress, analysts noted that there are still hurdles to clear before Boeing seals the transaction.

Iran had been an international pariah prior to the Iran nuclear deal reached in 2015 and the US-Iran relationship remains one of mutual distrust, with the US maintaining extensive sanctions on Iran.

Boeing archrival Airbus in January reached a deal to sell Iran 118 aircraft worth about $25 billion. French officials in April said the transaction was in the final stages of winning approval from the US Office of Foreign Assets Control, a key hurdle, because some of the aircraft components are made in the US. The deal still has not been finalized.

In Boeing's case, there are also questions about how Iran Air will pay for the planes given that US banks are still barred from doing business in Iran and from processing dollar-based transactions for Iran.

"If the deal can be consummated in euros, I think it will be a slam dunk," said Cliff Kupchan, an analyst at Eurasia Group.

Kupchan said many Iran-watchers have been surprised by the reluctance of risk-adverse European banks to jump into Iran.

"The payment needs to be ironed out by banking experts," he said.

It is also not certain that Iran's supreme leader Ayatollah Ali Khamenei will approve the purchase.

"Suppose we modernize our air fleet. Okay, it's a very important and necessary move. But is it the priority?" Khamenei said in a speech last week.

- Upgrading aging fleet -

The agreement was signed in the past month after a visit by Boeing representatives to Iran and several rounds of negotiations, Iran Air said on its website.

Iran's civil aviation authority says it needs 400 to 500 aircraft over the next decade to modernize its fleet.

Kupchan said international negotiators explicitly permitted commercial aircraft sales to Iran due to the decrepit nature of the Iranian fleet.

He predicted the Boeing deal would ultimately be completed due in part to the importance of the Iran nuclear deal to President Barack Obama's foreign policy legacy.

"My best judgment is that broadly speaking, this deal will move forward," he said. "Fixes will be found."

Investment bank Jefferies also cited the Obama administration's support as it noted the progress on the deal.

"While some politicians may take issue with this sale, it seems the administration is supportive of the transaction and that this should be sufficient to permit it to go forward despite some complaints," Jefferies said.

"The transaction may provide a framework for other industries seeking to expand their business in Iran, so it may generate support from leaders outside of the aerospace market as well."

Source:; AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today boeing nears landmark deal to sell planes to iran air Arab Today, arab today boeing nears landmark deal to sell planes to iran air

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today boeing nears landmark deal to sell planes to iran air Arab Today, arab today boeing nears landmark deal to sell planes to iran air

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Syrian children die of hunger

GMT 19:25 2017 Sunday ,22 October

Syrian children die of hunger
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday