ERBIL, Kurdistan Region--Iran Air has signed a historic $25 billion deal with the Chicago-based American multinational corporation Boeing, a move that has been welcomed by the US State Department as a business activity approved under the nuclear deal worked out between Iran and a US-led group of nations last year.
“The State Department welcomes Boeing’s announcement of this deal with Iran Air, which involves the type of permissible business activity envisioned in the Joint Comprehensive Plan of Action. Boeing has been in close contact with the State Department regarding this deal,” said John Kirby, a State Department spokesperson, at a press conference in Washington on June 21.
Boeing issued a statement to the Associated Press confirming the deal that it signed with Iran Air, "under authorizations from the US government following a determination that Iran had met its obligations under the nuclear accord reached last summer."
Since the Islamic revolution in 1979, there has not been any business between the US and Iran. The Iranian nuclear deal signed in July 2015 opened new doors for Iran and may bring the country back into the international market.
“Possible deals between the Islamic Republic and Boeing could be worth as much as $25 billion” said Iran's Transportation Minister Abbas Akhoundi on Tuesday to AP.
The State Department confirmed that they are committed to implementing all the JCPOA pledges. “We committed, as you know, to licensed sales of civil passenger aircraft and will continue to implement this and all of our JCPOA commitments. The JCPOA provides an opening for civil aviation companies, including American companies,” Kirby said.
According to the Iranian Ministry of Roads and Urban Development, after the announcement of the nuclear deal, several large aircraft manufacturing companies signaled their interest in the Iranian market. “An agreement was consequently signed after Boeing company representatives paid several official visits to Iran and held effective talks with Iran Air officials.”
“In this deal it is agreed that if both sides could obtain proper permissions from their governments, Iran Air will hopefully be able to lease purchase aircrafts mainly from the new generation of Boeing 737,” as well as Boeing 777s, the ministry added.
The Boeing 737s are smaller jets typically used for flights of up to five hours while the 777s are larger and can fly 12 hours or longer.
Iran has also ordered 20 airplanes from French-Italian aircraft manufacturer ATR, in a deal that was signed months after a similar deal with Boeing’s rival, Airbus, for the purchase of 118 aircraft.
When it was under sanctions prior to the nuclear deal being worked out, Iran was unable to update its aviation systems and aircrafts.
"We need 551 airplanes in the next decade," said Abbas Ahmad Akhoundi, Minister of Roads and Urban Development. “Iranian airlines have a total of 266 planes of which 100 are out of operation.”
The Obama administration worked hard to make the nuclear deal happen in order to open up Iran to the US and the rest of the world.
“The political impacts of opening for businesses with Iran are quite big that the Obama administration is hoping that this will lead Iran toward moderation,” said James Phillips, a senior research fellow at the Heritage Foundation, to Rudaw in November 2014.
Despite the deal, Iran is still on the list of countries that sponsor terror and in US there are concerns that Iran could use the deal and aircraft purchases for military reasons.
Nussaibah Younis, Middle East expert at the Atlantic Council, told Rudaw in Washington that “those planes should not be used for the military purposes. If they did then the trade activities will be limited.”
Boeing confirmed they will follow US government instructions on the deal with Iran.
"Boeing will continue to follow the lead of the US government with regards to working with Iran's airlines, and any and all contracts with Iran's airlines will be contingent upon US government approval," Boeing statement to AP.
Some Republican congressmen are proposing a new law to double taxes on any goods sold to Iran. The Israeli lobby in the US is also against the deal and is threatening to sue against the agreement.
“The State Department welcomes Boeing’s announcement of this deal with Iran Air, which involves the type of permissible business activity envisioned in the Joint Comprehensive Plan of Action. Boeing has been in close contact with the State Department regarding this deal,” said John Kirby, a State Department spokesperson, at a press conference in Washington on June 21.
Boeing issued a statement to the Associated Press confirming the deal that it signed with Iran Air, "under authorizations from the US government following a determination that Iran had met its obligations under the nuclear accord reached last summer."
Since the Islamic revolution in 1979, there has not been any business between the US and Iran. The Iranian nuclear deal signed in July 2015 opened new doors for Iran and may bring the country back into the international market.
“Possible deals between the Islamic Republic and Boeing could be worth as much as $25 billion” said Iran's Transportation Minister Abbas Akhoundi on Tuesday to AP.
The State Department confirmed that they are committed to implementing all the JCPOA pledges. “We committed, as you know, to licensed sales of civil passenger aircraft and will continue to implement this and all of our JCPOA commitments. The JCPOA provides an opening for civil aviation companies, including American companies,” Kirby said.
According to the Iranian Ministry of Roads and Urban Development, after the announcement of the nuclear deal, several large aircraft manufacturing companies signaled their interest in the Iranian market. “An agreement was consequently signed after Boeing company representatives paid several official visits to Iran and held effective talks with Iran Air officials.”
“In this deal it is agreed that if both sides could obtain proper permissions from their governments, Iran Air will hopefully be able to lease purchase aircrafts mainly from the new generation of Boeing 737,” as well as Boeing 777s, the ministry added.
The Boeing 737s are smaller jets typically used for flights of up to five hours while the 777s are larger and can fly 12 hours or longer.
Iran has also ordered 20 airplanes from French-Italian aircraft manufacturer ATR, in a deal that was signed months after a similar deal with Boeing’s rival, Airbus, for the purchase of 118 aircraft.
When it was under sanctions prior to the nuclear deal being worked out, Iran was unable to update its aviation systems and aircrafts.
"We need 551 airplanes in the next decade," said Abbas Ahmad Akhoundi, Minister of Roads and Urban Development. “Iranian airlines have a total of 266 planes of which 100 are out of operation.”
The Obama administration worked hard to make the nuclear deal happen in order to open up Iran to the US and the rest of the world.
“The political impacts of opening for businesses with Iran are quite big that the Obama administration is hoping that this will lead Iran toward moderation,” said James Phillips, a senior research fellow at the Heritage Foundation, to Rudaw in November 2014.
Despite the deal, Iran is still on the list of countries that sponsor terror and in US there are concerns that Iran could use the deal and aircraft purchases for military reasons.
Nussaibah Younis, Middle East expert at the Atlantic Council, told Rudaw in Washington that “those planes should not be used for the military purposes. If they did then the trade activities will be limited.”
Boeing confirmed they will follow US government instructions on the deal with Iran.
"Boeing will continue to follow the lead of the US government with regards to working with Iran's airlines, and any and all contracts with Iran's airlines will be contingent upon US government approval," Boeing statement to AP.
Some Republican congressmen are proposing a new law to double taxes on any goods sold to Iran. The Israeli lobby in the US is also against the deal and is threatening to sue against the agreement.
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