Boeing signs $3B deal with Iran airline, a first under Trump

Boeing signs $3B deal with Iran airline, a first under Trump

Boeing signs $3B deal with Iran airline, a first under Trump

In January, Iran Air signed agreements with Airbus Group SE (EADSY) to buy 118 planes worth $25 billion, just weeks after European Union blacklisted Aseman Airlines from European skies.

The unprecedented deal is expected to create about 18,000 jobs in the United States of America according to the US Department of Commerce.

Iran has been desperate to renew its ageing fleet of planes, but was largely blocked from dealing with major aircraft manufacturers until a 2015 accord with world powers that eased global sanctions in exchange for curbs to its nuclear programme. Aircraft lessors may be hesitant to provide financing if the threat of renewed sanctions raises a risk they couldn't reclaim the planes if Iranian carriers defaulted.

Aseman spokesman Amir Reza Mostafavi told The Associated Press that the deal came following several round of talks over the past year between the airline and Boeing. Iran Air also will lease 29 new Boeing 737s.

The new deal adds to a previous $16.6-billion order struck with another Iranian carrier. Trump has also spoken often about the importance of keeping jobs in the USA, which this deal would do, according to Boeing. Boeing is headquartered in Chicago and its planes are made by American hands in Washington and SC.

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Meanwhile, Boeing has been waging a charm offensive against Trump, tolerating his claims to have renegotiated a still-in-development deal to build a new Air Force One, for instance.

Boeing says in a statement that the agreement was negotiated under authorisations from the US government, but that the company is yet to receive the final approval from the US Treasury's Office of Foreign Assets Control (OFAC) to perform the transaction. The deal was made possible by the fact that the Obama administration lifted sanctions on Iran in return for the Islamic Republic to make concessions on its nuclear program. The Trump administration could move to reverse numerous promises made by the United States to Iran under the previous administration, including airplane sales and other concessions aimed at promoting business in Iran. As NIAC's 2016 report, 'Losing More Billions: The Cost of Iran Sanctions to the U.S. Economy, ' found, the United States is by far the biggest loser of all sanctions enforcing nations. In a statement that was released on Tuesday, Boeing did not fail to tout the potential job-creation effect of the deal.

Boeing shares rose 0.8 percent to $178.07 at 2:02 p.m.in NY.

"On the same day Bashar al-Assad's air force dropped chemical weapons onto children, an American company announced its intent to sell airplanes to Assad's patrons in Tehran", Peter Roskam of IL, an influential Republican who has long opposed Boeing's intentions in Iran, told the Times.

"This is not a market that means a great deal anymore", he said.

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