Boeing Co (BA) Inks $3B Jet Deal With Airline in Iran

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Boeing Co (NYSE:BA) has singed a deal worth $3 billion with Iran Aseman Airlines.

Boeing Co (BA) Inks $3B Jet Deal With Airline in IranThe deal between Boeing Co and Iran Aseman Airlines is a Memorandum of Agreement for the latter to purchase 30 Boeing 737 MAX airplanes from the former. The deal will have these planes being sold for $3 billion. BA says that it will start delivering the new airplanes to the airline in 2022.

Boeing Co’s deal with Iran Aseman Airlines also includes the right for the airline to purchase an additional 30 Boeing 737 MAX airplanes. The details of the Memorandum of Agreement were negotiated with authorization from the United States government.

Boeing Co says that the deal was approved after it was determined that Iran was keeping its part of the nuclear accord that was signed back in 2015. BA also says that it will be seeking approval from the Office of Foreign Assets Control to perform under this transaction.

Boeing Co also notes that this deal will create or sustain jobs in the United States. It says that according to the U.S. Department of Commerce, a deal of this size should support 18,000 jobs in the United States.

Despite approval from the U.S. government for the deal with Iran Aseman Airlines, Boeing Co may still run into trouble with President Donald Trump’s administration. Trump’s White House has been looking to crack down on Iran. The issue may also make it hard for Iran Aseman Airlines to get funding for the purchase of the planes.

BA stock was up slightly as of Tuesday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/boeing-co-iran-aseman-airlines-ba/.

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