Economy, Domestic Economy

US Planemaker Confirms Signing of Agreement

US Planemaker Confirms Signing of Agreement US Planemaker Confirms Signing of Agreement

Flag carrier Iran Air says it is buying new generations of Boeing 737, as well as the 300ER and 900 version of the Boeing 777 under a Lease-Purchase contract that it recently signed with the American planemaker for the purchase of 100 jets.

“The finalization of the contract is pending procurement of final permits from the governments of Iran and the US,” read a statement published by Iran Air late on Monday.

Boeing's 737 MAX, the fourth generation of the 737 family, is a short- to medium-range twinjet narrow-body airliner.

Also, the 777 is a family of long-range wide-body twin-engine jet airliners that has a typical seating capacity of 314 to 451 passengers, with a range of 9,695 to 17,594 kilometers. 

The Iran-Boeing deal was first announced by Minister of Roads and Urban Development Abbas Akhoundi last Tuesday.

The Chicago-based manufacturer issued a statement to AP this Tuesday, confirming that it signed the agreement “under authorizations from the US government”.

“Boeing will continue to follow the lead of the US government with regard to working with Iran’s airlines, and any and all contracts with Iran’s airlines will be contingent upon US government approval,” it said.

Iran’s fleet of passenger jets—with ages exceeding 20 years—is in dire need of an overhaul after years of sanctions prevented the country from dealing with international planemakers.

According to Akhoundi, Iran is hoping to become a major aviation hub in the Middle East and to that end, the country needs 400 mid- and 100 short-range planes in the next 10 years, requiring an investment of about $50 billion.

“Of the 250 planes in Iran, 230 need to be replaced,” Ali Abedzadeh, the head of Civil Aviation Organization of Iran, said, adding that the country seeks to diversify its purchases.

In January, Iran clinched a deal to buy 118 aircraft from French planemaker Airbus and 20 short-haul planes from Airbus’ French-Italian subsidiary ATR.

Iran’s agreement with Airbus, which is worth $27 billion based on list prices, has placed an order for 45 single-aisle planes, including 21 from the current generation of A320 family and 24 re-engined A320neos, 73 wide-body aircraft, including 27 A330s, 18 A330neos and 16 of Airbus’s latest A350s, plus 12 A380s.

Airbus is scheduled to deliver 5-8 of the aircraft by the end of 2016, according to Iranian officials.

The Airbus deal, however, has yet to be finalized amid obstacles created by the US in the way of processing the accord’s funds.