Boeing confirms $16.6 billion deal to sell 80 aircrafts to Iran

Company - Himanshu Gill - Dec 12,2016

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boeing confirms 166 billion deal to sell 80 aircrafts to iran

Boeing announced that it sealed a deal of $16.6 billion with Iran’s State airline, ‘Iran Air’ in which it would sell 80 passenger planes to the country.

The deal, spanning for a period of 10 years, includes 50 of the 737 MAX 8 aircraft, 15 of the 777-300 ERs planes and 15 of the 777-9s jets. The first aircraft has been scheduled for delivery in 2018.

It is the biggest deal between these two countries since the 1979 Islamic revolution. Boeing confirmed the deal, worth $16.6bn at current list prices has been approved by the US government. Iran had earlier been economically blacklisted by the United States.

The company said that this agreement would create and support tens of thousands of jobs in the US directly associated with production and delivery of the planes.

Iran is also on the verge of completing a deal with Europe’s Airbus, which led western companies to invest in Iran with a provisional agreement for 118 planes when Tehran emerged from global sanctions in January this year. The first batch of this deal is expected to involve 50 to 60 jets and would be completed in the next couple of days.

According to some analysts, this deal could also test relations between America's top exporter and President-elect Donald Trump, days after he complained about the cost of new Boeing "Air Force One" jets.

Boeing, based in Chicago, is America’s top exporter in terms of the value of the goods it sells, which include mid and large sized airliners that are increasingly shipped to China and other parts of Asia like the Middle East - areas with the fastest economic growth. 

At present, Boeing employs about 150,000 people and makes most of its parts in the United States and exports the final products, bringing in cash from overseas. It has also increased production at its giant plants in Washington State and South Carolina.