According to the Wall Street Journal, Boeing Co. has sealed the deal with the Islamic Republic of Iran for the sale of 80 jetliners as consolidation of earlier deal plans. The deal, valued at $16.6 billion, was announced during the summer and officially signed on Sunday.
The historic jet-sale accord was made between the U.S and Iran despite the political uncertainty that Trump’s election may spur. The deal between the Chicago-based company includes 15 of the company’s 777-300ER long-haul jets and 15 of the newer 777X aircrafts.
European rival Airbus Group SE is also currently attempting to establish similar deals with the Islamic Republic although they are not set in stone yet. As of January, the company had agreed to sell 118 planes to Iran Air for a list price deal of approximately $25 billion.
According to Iranian state news agency, Iran’s transport minister, Abbas Akhoundi, said the deal would soon be followed with an Airbus finalized one and that it was “the first step for the renovation of the country’s aviation fleet.”
It is supposed that due to sanctions, Iran Air operates outdated airliners and thus is in need of new, state of the art planes.
Increasing Iran Relations
The airliner companies are not the only ones currently displayed business interests in Iran. French oil company Total SA, telecommunications firm Orange, and Vodafone Group are amongst some of the Western companies establishing plans to enter the Iranian market as well.
It is understood that the deal could present potential obstacles as Mr. Trump is known to be a vocal critic of commercial openings with Iran.
Additionally, the deal will require approval from the U.S. Treasury, State Department and Congress due to the fact that the deal Iran involves a state-owned airline.
However, the Trump transition team has yet to respond to the Boeing aircraft sale to Iran.