Iran seals $22.3 billion deal with Boeing

The contract is one of the biggest benefits to materialise from last year’s landmark nuclear agreement between America and the Islamic Republic.

Iran Air’s 80 new planes will transform Iran’s accident-prone aviation industry, which has been hobbled by years of sanctions following the 1979 revolution and US Embassy takeover.

The crippling embargo prevented the country from buying planes or spare parts from Chicago-based Boeing or its French rival Airbus, because at least 10 per cent of Airbus components are manufactured in America.

The deal will include 50 737s, and 30 777s, with the first to be delivered in 2018.

Most of Iran’s ageing fleet of 250 commercial planes was purchased before 1979, and as of June only 162 were operational, with the rest grounded because of a lack of spare parts.

Iran Air, whose website lists a fleet of 43 planes, offers direct flights to more than 30 international destinations, including London.

The United States still maintains extensive sanctions on Iran, and while President-elect Donald Trump has criticised the deal, it’s unclear if he will scrap the agreement.

Iranian Transport Minister Abbas Akhoundi, who attended the signing ceremony, said it was a “historic” day, and that the deal would create 8000 jobs for Iranians.

“The deal has a clear message for the world: we support peace and security as well as the growth of Iran based on a win-win policy,” he was quoted as saying.

“We hope that despite changes in the US administration, the country will remain loyal to its commitments.”

The Republican-led House of Representatives last month voted to bar commercial aircraft sales to Iran in a move that could block the Boeing deal.

It will likely face opposition from the Democrats in the Senate, however, President Barack Obama said he will veto the bill if it reaches his desk before he leaves office next month.

Boeing made a point of saying it worked closely with the US government throughout the deal-making process, and says the deal will support tens and thousands of American jobs.

— with Associated Press