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Boeing signs breakthrough deal with Iran Air
June 24th 2016
Boeing announced on Tuesday it had signed a Memorandum of Agreement with Iran Air for an unspecified number of commercial passenger aircraft, but with Iranian statements saying the order was for approximately 70 single-aisles and 30 long-haul jets. Read More »
On Monday, the flag carrier, now largely free from U.S. sanctions, said it planned to introduce B737s and B777s, including the B777-300ER and B777-9 into its network. It has been reported the deal includes the B747-8, which would provide a vital lifeline to that assembly line after Boeing earlier this year announced it would cut output of the stretched Jumbo Jet to just 0.5 frames a month because of weak demand.
Any deal with Iran will face serious hurdles, given the adversarial relationship between Washington and Tehran. “The greatest beneficiaries of any potential aircraft sale to Iran would be the Islamic Republic’s despotic leaders,” Reps. Peter Roskam, Robert Dodd and Randy Hultgren wrote in an open letter to Boeing chairman and chief executive, Dennis Muilenburg. “The regime holds a majority ownership stake in Iran Air.”
“If Boeing goes through with this deal, the company will forever be associated with Iran’s chief export: radical Islamic terrorism,” House Chairman of the Ways & Means Subcommittee on Oversight, Roskam said on Tuesday. Boeing said it “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”.
Iranian transport minister, Abbas Akhoundi, told state television on Tuesday the agreement with Boeing could have a value of up to $25 billion, according to the Associated Press, roughly on par with a similar deal Boeing rival, Airbus, with signed with Iran for 21 A320ceos, 24 A320neos, 27 A330ceos, 18 A330-900neos, 16 A350-1000s and twelve A380s earlier this year.
Airbus CEO, Fabrice Brégier, recently said the firm was making progress in securing export licenses, but more work was needed. Brégier told Orient Aviation he hopes the deal will be finalized this year.
In February, Iran Air ordered 20 ATR72-600s (plus 20 options), valued at €1 billion at list prices. ATR chief, Patrick de Castelbajac, said earlier this month that the turboprop maker hoped to deliver the first of its regional planes to Tehran by year end. Payment will be in Euros to sidestep lingering sanctions barring Iran from using the U.S. financial system.
Speaking to media on the first CS100 passenger flight from Dublin to Zurich last month, Bombardier Commercial Aircraft president, Fred Cromer, confirmed discussions with Iran were under way, including talks with a new regional carrier to be based in local tourism hotspot, Qeshm Island. ATR and Bombardier competitor, Embraer, have confirmed they are in negotiations with Iranian carriers.
