Boeing Signs Agreement with Iran -- Update
June 21 2016 - 6:08AM
Dow Jones News
By Robert Wall
LONDON-- Boeing Co. Tuesday said it had signed a tentative
agreement to sell jetliners to Iran, in what would be one of the
Islamic republic's biggest deals with a U.S. manufacturer since
trade sanctions on Tehran were eased.
The deal comes after months of talks between Boeing and Iran Air
about a deal. Details of the potential transaction haven't been
disclosed by Boeing, although Iranian Transport Minister Abbas
Akhoundi told state television Tuesday that the deal could have a
value of up to $25 billion, according to the Associated Press.
"Boeing confirms the signing of a Memorandum of Agreement (MOA)
with IranAir expressing the airline's intent to purchase Boeing
commercial passenger airplanes," the world's largest plane maker
said.
Iran's airlines have indicated a dire need for both medium-haul
jets like Boeing's single-aisle 737 and long-haul aircraft like its
777 and 787 Dreamliners. However completing an agreement with Iran
Air could take months, amid continued uncertainty from lenders
about financing deals with Iran and the need for the U.S.
government to sign off on any sale.
"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," the Chicago-based plane maker said.
In January Airbus Group SE announced an agreement with Iran for
118 new jets, underscoring Iran's interest in restoring commercial
links with Europe, as well as the country's urgent need for new
commercial aircraft.
The deal, which had a list price value of about $27 billion,
hasn't been completed because of concerns in the financial
community about doing deals in Iran. Airbus is also still waiting
for an export license from the U.S. government for the planes.
Airbus commercial airplane boss Fabrice Brégier recently said
the company was making progress securing the export license, but
more work was needed. He remained optimistic the deal, which would
include Iran's purchase of 12 A380 superjumbos, could be completed
this year.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
June 21, 2016 05:53 ET (09:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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