Iran to buy 100 new Boeing planes

Iran has agreed to purchase 100 new Boeing (NYSE: BA) aircraft to replace it´s aged passenger planes, pending final approval by US Treasury authorities, the company said.

According to Iran´s civil aviation organization, 230 or 250 planes need to be replaced. The reported value of the contract for 100 planes is estimated at USD17 billion.

The final obstacle in the transaction are obtaining permits from the US Treasury Department and currently there is no precise timeline for the written contract to be implemented, according to Iran´s civil aviation organization.

In February 2016, Boeing was granted approval from the US government to explore resuming sales to Iran after US sanctions were partially lifted in January. Boeing has only been granted permission to present its products to IranAir and a handful of other airlines as it tries to catch up with Europe´s Airbus, which won a provisional deal earlier this year for 118 jets worth USD27 billion.

Iran has ordered about 200 planes in total from three Western manufacturers since mid-January when economic sanctions were lifted following a deal on Tehran´s nuclear programme.