Iran Signs Tentative Deal with Boeing to Buy Passenger Jets

"It was also said by Boeing that it had signed a memo of understanding with Iran Air ", in which the state airline expressing its intent to buy the Chicago-based company's commercial passenger airplanes also.

Despite the uncertainties such as USA government approval of the deal and financing of the transaction, Boeing Co (NYSE:BA) sees a promising market in Iran.

But a large order is expected following Iran's agreement in January to purchase 118 Airbus (AIR.PA) aircraft worth $27 billion at list prices. The carrier will obtain the planes through a lease-purchase agreement, pending clearance from the USA and Iran. However, at the same time, the report went on to add, " Boeing revealed no further details on the deal.

In this photo taken on February 7, 2016, A Iranian Mahan Air passenger plane takes off as a plane of Iran's national air carrier, Iran Air, is parked at left, at Mehrabad airport in Tehran, Iran.

But it's not just American hesitancy slowing US companies from entering Iran.

Plane deals with Iran aren't without risks.

Following Iran's nuclear deal with the world's major powers and lifting of sanctions against the country, the Islamic Republic made renovation of its ageing air fleet one of its top priorities. Airbus also is waiting for an export license from the US government. Iran Air has previously indicated that it wants to refresh its aging fleet with a mix of approximately 100 new 737s, 777s and 787s. The European Union eased its restrictions on Iran Air last week.

Akhoundi said the first Boeing planes could arrive by October if the deal moves forward.

Iran's Supreme Leader Ayatollah Ali Khamenei has expressed his continued distrust of American brands coming into the country. Okay, it's a very important and necessary move. The Iran Civil Aviation Organisation estimates the country will require 80 to 90 new aircraft each year over the next five years, just to keep pace with local demand.

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.

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