Thumbs-up from the Treasury is a major step forward on a key portion of last year’s deal between Iran and six world powers including the U.S., in which Iran agreed to curb its nuclear program in exchange for relief from decades-long sanctions. That relief officially started in January, as we reported.
“These licenses contain strict conditions to ensure that the planes will be used exclusively for commercial passenger use and cannot be resold or transferred to a designated entity,” the Treasury spokesperson said.
Boeing and Iran reached a $20 billion provisional agreement in late June for 80 aircraft, as NPR’s Jackie Northam reported.
Since then, the Treasury has “spent months scrutinizing the deal to see what technology will be used on the planes, and whether anyone remaining on a U.S. sanctions list is involved in the deal,” Jackie said.
She added that this marks the first time that Boeing has sold planes to Iran since its 1979 revolution. Jackie reports, “There is ferocious competition between Boeing and Airbus, and a good chance Boeing would be locked out of the Iranian market for decades if it didn’t get this approval.”
The new aircraft are a major step toward modernizing and expanding “the country’s elderly fleet, held together by smuggled or improvised parts after years of sanctions,” as Reuters reported.
The Treasury also granted Boeing’s competitor Airbus a license to sell 17 aircraft to IranAir, as Jackie reported. “Even though Airbus is based in Europe, it needs U.S. approval because its planes contain sophisticated technological equipment made in America. That includes the computers and navigational equipment.”
Both companies received the green light to sell a mix of wide-body and single aisle jets, Jackie said.
She has reported that this deal is seen as an important test case for doing business with Iran, including big questions on financing:
The deals …