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Boeing, Iran In Talks For Possible Aircraft Sales and Services

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(Credit: David Ryder/Bloomberg via Getty Images) The Boeing Co. 737 MAX airplane stands on the production line at the company's manufacturing facility in Renton, Washington, U.S., on Monday, Dec. 7, 2015. Boeing Co.'s latest 737 airliner is gliding through development with little notice, and that may be the plane's strongest selling point. The single-aisle 737 family is the company's largest source of profit, and the planemaker stumbled twice earlier this decade with tardy debuts for its wide-body 787 Dreamliner and 747-8 jumbo jet.Boeing's New No-Drama 737 Jetliner Is Ready For Its Public Debut
April 12
11:19 PM 2016

It was in January when nuclear sanctions were lifted in Iran which is already in talks with Boeing Co. to purchase airliners.  It is considerably one of the highest-profile deals between a U.S. company and Tehran. With the eagerness to re-establish ties with Western companies, Iran promptly signed many landmark deals with European companies to show it is once again ready to do business.

On Monday, Boeing stated that it already had initial talks in Tehran with Iranian airlines regarding the possible sale of its planes and aircraft services. An agreement for Boeing planes could be the largest indication that Iran and the U.S. are moving toward the usual trade relations. The U.S. government permitted Boeing to enter talks with selected Iranian carriers; however, the planes would still need further clearance, according to a MarketWatch report.

In February, the U.S. government granted Boeing a license to talk about the needs of Iran's airlines. No particular airplane models are discussed but an Iranian official claimed that the country was interested to purchase 737 single-aisle jets as well as the 777 long-range planes.

Nasdaq stated that the international sanctions against Iran were lifted after the country agreed that its nuclear program will be controlled under an agreement with major powers. If a deal will be closed between Iran and Boeing, it will be one of the major deals between the two parties since the nuclear sanctions were lifted.

Iran officials said they are expecting to purchase 400 or more new airplanes in the future to cater their demand to substitute existing planes which are more than 25 years old and to boost growth.

Boeing has been cautious with its dealings with Iran, being anxious that it will overstep the authority granted under the Iran nuclear agreement. The aircraft manufacturer had formerly received limited approval to supply some parts and documentation to Iranian carriers, The Wall Street Journal reported.

"Should any agreements be reached at some future point, they would be contingent on the approval of the U.S. Government," Boeing said in a statement.

Meanwhile, Airbus which is Boeing's rival had an agreement in January to sell Iran 118 planes amounting to $27 billion at list prices.

Iran keeps a special status showing Western concerns about the nation's weapons programs. Talks about plane have focused on buying them instead of shifting technology to support locally produce parts that became the distinguishing characteristic of other mega-airliner deals around the world. 

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