Last updated: 11:16 AM ET, Tue June 21 2016

Boeing Reaches $25 Billion Agreement with Iran Air On Sale of Airplanes

Airlines & Airports | Donald Wood | June 21, 2016

Boeing Reaches $25 Billion Agreement with Iran Air On Sale of Airplanes

PHOTO: An Iran Air 747-100, built by Boeing. (Public Domain Photo)

On Tuesday, Boeing announced it has reached an agreement with Iran Air for the purchase of aircraft from the manufacturer, marking the biggest business deal between Iran and the United States since 1979.

According to The Associated Press, Iranian officials have suggested that the country is interested in purchasing $25 billion worth of airplanes from Boeing, but existing enmity and sanctions between the U.S. and Iran could complicate any agreement.

Boeing released a statement to The AP saying the agreement was signed “under authorizations from the U.S. government following a determination that Iran had met its obligations under the nuclear accord reached last summer. 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.”

Iran Air announced that the carrier is looking to upgrade its fleet with a new generation of Boeing 737, in addition to the 300ER and 900 versions of the Boeing 777. The country has also made purchase agreements with other airplane manufacturers Airbus and ATR.

Iranian officials believe if the deal is completed, the first Boeing plane could be delivered by October. While concrete details about the order agreement remain unclear, officials in Iran have told local media outlets that the sale would involve 100 Boeing aircraft.

Boeing is allowed to talk business with Iran as part of the nuclear deal between the U.S. and the Middle Eastern nation. While some officials caution the plane manufacturer about dealing with Iran due to the strenuous relationship, the two sides are moving forward with their agreement.

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