Iran Buying $17 Billion Passenger Jets From Boeing (NYSE:BA)

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The Boeing Co (NYSE:BA) of Illinois, United States has sealed a deal with Iran to sell 80 passenger jets to the country in a deal that is worth $16.6 billion. The multinational corporation, which designs, makes, and sells satellites, airplanes, and rockets also claimed that they were close to signing another deal for dozens of more planes. This would be Iran’s biggest contract for plans since the Islamic revolution of 1979.

The deal between Boeing and IranAir, arrived at on Sunday, includes the sale of 30 long-haul 777s and 50 narrow-body 737 MAX aircrafts.

Iran Signing Deal With the Airbus Group As Well

Further, an official of IranAir has confirmed that they are currently in the final stages of formalizing a deal with the Airbus Group (EPA:AIR) of Europe for the purchase of 50 to 60 jets. It was learned that the deal is expected to close in the next few days. Meanwhile, IranAir has also confirmed the agreement with Boeing. Royal Dutch Shell, which is the second largest energy company in the world, also disclosed last week that they will be developing oil and gas in the country again.

This is all good news for Iran. The country has faced global sanctions for a long time, which were finally lifted recently. For decades, the west Asian country had to depend on smuggling to bring in new airline parts and keep the fleet operational. Iran’s fleet is aging as well, and this is why they are signing deals with Boeing and Airbus.

This Boeing deal is the biggest since the fall of the Shah, and it clears the technical hurdle for implementing a pact between world powers and Iran, signed last year, which will open trade, in exchange of lifting curbs. However, Congressional Republicans are still opposing this.

“United Against Nuclear Iran” is Opposing the Aircraft Deals

However, the “United Against Nuclear Iran” group has advised both these businesses not to sell their aircrafts to the country. The group is against normalizing business relations with Iran because of the country’s history. Capt. Michael Pregent wants to stop the sale because according to allegations, the Islamic Revolutionary Guard Corps uses civilian airlines to support terrorism.

“It is inexcusable for Boeing (NYSE:BA) to enter into business dealings with the regime when they are fully aware it is responsible for deaths and maiming of our men and women in uniform”, he said.