Business

Iran (Almost) Open For Business With Boeing Aircraft Deal

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The U.S. government approved Boeing’s $17 million deal with Iran Air Tuesday, marking the largest commercial deal with Iran since 1979.

Though the U.S. lifted trade sanctions on Iran as part of a controversial deal which allows Iran to continue its nuclear energy program, the government has tight restrictions on dealings with the country.

Boeing signed a deal with the Islamic Republic for 80 commercial airplanes in June, pending approval from the U.S. government. (RELATED: Boeing-Iran Deal Would Be Biggest US-Iran Commercial Relationship Since 1979)

The Department of the Treasury will allow Boeing and European company Airbus to sell planes to replace Iran Air’s aging fleet of 160 aircraft over the next several years, The Wall Street Journal reported Wednesday. (RELATED: Boeing Had 25 Billion Reasons To See The Iran Deal Go Through)

Iran is excited to replace its 1970s-era planes. “From today, we will have safe planes,” Iranian President Hassan Rouhani said when the deal came into effect in January.

The U.S. Department of State believes the proposed business deal represents what President Barack Obama intended when he pushed the Iran deal last summer. The deal, “is good … for both the economy and for public safety,” Department of State spokesperson John Kirby told Reuters.

The sale is not guaranteed to go through. Boeing would still have to gain financing from the U.S. Export-Import bank, which provides taxpayer-backed loans for some of Boeing’s biggest international sales deals.

Many lawmakers oppose the deal; the House of Representatives passed legislation that would effectively prohibit the deal from going through. Rep. Peter Roskam proposed two amendments to the General Appropriations Bill which both prohibit the Office of Foreign Assets Control from using funds to authorize a sale license for airplanes sold to Iran, and prevent Iran from receiving loans from U.S. banks to purchase aircraft.

The General Appropriations Bill passed the House July 7, but has not received a vote in the Senate.

“If this moves forward, Boeing and terror will be intertwined,” Roskam told USA Today in June when he introduced his amendment. “Congress will not be sitting by idly without something to say about it.”

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