Iran Air and Boeing have confirmed a finalized agreement for 80 aircraft — a mix of single-aisle and wide-body jets — in a deal valued at approximately $16.6 billion.
The announcement formalizes a memorandum of agreement the two companies signed in June and converts the terms agreed in September into a binding contract. The order includes 50 Boeing 737 MAX 8 single-aisle aircraft, 15 777-300ERs and 15 777-9 wide-body jets. Deliveries are scheduled to begin in 2018.
Boeing said it worked closely with the U.S. government during the sales process and will continue to comply with all applicable licensing requirements as it implements the agreement.
Despite the contractual confirmation, the transaction could face political and regulatory uncertainty. Incoming U.S. President Donald Trump had criticized the 2015 Iran nuclear accord that paved the way for the lifting of sanctions and renewed commercial opportunities with Iran. Whether that agreement would be maintained remained unclear at the time of the sale, and any changes in U.S. policy could affect U.S. companies’ ability to do business in Iran.
This purchase follows another major order by Iran Air earlier in 2016, when the carrier signed an agreement with Airbus to acquire 118 single- and wide-body aircraft. Together, these deals signaled a significant fleet renewal plan for Iran Air as it prepared to modernize and expand its services following sanctions relief.