Boeing And Iran Aseman Airlines Agree on Order for 30 Max Jets

Boeing on Tuesday announced its second deal to sell aircraft to an Iranian airline in the last four months following the signature of a memorandum of agreement with Iran Aseman Airlines covering thirty 737 Max narrowbodies worth $3 billion. The deal includes a provision granting the Iranian airline purchase rights for another 30 of the airplanes. The agreement calls for deliveries to start in 2022.

To become a firm order, the contract must first win approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Export to Iran of any commercial aircraft with at least 10 percent U.S. technology content requires approval from the OFAC. Boeing has already gained an OFAC license allowing for a so-called definitive agreement signed with Iran Air in December covering fifty 737 Max 8s, fifteen 777-300ERs and fifteen 777-9s valued at $16.6 billion at list prices.

Although Airbus has already delivered three airplanes to Iran after gaining its own OFAC license last year, Boeing has yet to send a single airplane to Iran Air as questions persist over whether the new Treasury Department secretary appointed by the Trump Administration will exercise his right to amend, modify or revoke the license. While Trump remains critical of the 2015 nuclear settlement with Iran that allowed for the export of commercial aircraft to the Islamic Republic, he has also lauded Boeing for its role in creating U.S. jobs through the sale of its aircraft around the globe.

In a statement issued Tuesday, Boeing cited estimates issued by the U.S. Department of Commerce that sales of the magnitude of the Iran Aseman deal support more than 18,000 jobs in the U.S.

“Boeing continues to follow the lead of the U.S. government with regards to working with Iran’s airlines, and any and all contracts with Iran’s airlines are contingent upon U.S. government approval,” the airframer concluded.