Iran Air to Purchase 100 Boeing Jets, Pending US Treasury Department Approval, Though No $ to Pay

In case you missed the news two weeks ago, Iran Air has reached a deal with Boeing to purchase up to 10o 737 and 777 jets valued at $17B. Iran Air intends to use a lease purchase agreement once US and Iranian authorities sign-off. The head of Iran’s Civil Aviation Organization says that out of 250 planes in the country, 230 needed to be replaced.

“The final obstacle in this area are only the permits from the US Treasury Department,” Ali Abedzadeh told the state-owned newspaper Iran in remarks published on Sunday, adding that there was no precise timeline for the written contract to be implemented before US Treasury permission.

This will make Boeing the first US company to do business with Iran following the end of nuclear sanctions earlier in the year.

There are quite a few skeptics though, including an analyst at the Teal Group who said the deal likely won’t happen since Iran doesn’t actually have money or credit to pay for the planes.

“It’s great that they are going to do this deal, but it’s more talk than actual money,” he said. “The biggest hurdle is financial. A lot of financiers are not comfortable with financing planes going to Iran”.

Check out the full read here.

Iran Air

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