Iran finalises deal with Boeing to procure 100 planes

Iran is in the final stages of sealing a deal with American plane manufacturer Boeing to supply 100 planes. While the company is yet to make a public announcement on the matter, officials in Tehran have said an agreement has been reached.

"We have 250 planes in the country, 230 need to be replaced," Ali Abedzadeh, the chief of the Civil Aviation Organization of Islamic Republic of Iran (CAO.IRI), was quoted as saying by a state-run news agency.

Besides state carrier Iran Air, six other airlines are thought to be involved in the talks with Boeing. Details about the deal remain vague as CAO.IRI awaits approval from the US Treasury. If confirmed, this will be the first time Iran will be buying aircraft from Boeing since the 1979 Islamic Revolution.

"Iran Air is directly holding talks with Boeing while other Iranian airlines have also conducted negotiations with the American company which are being pursued," secretary of the country's Aviation Companies Association Maghsoud Asadi Samani told the quasi-official Mehr news.

"Last year, Boeing representatives made a visit to Iran where they provided several airlines the opportunity to hold meetings with them. Since then, negotiations with Boeing are still continuing until the two sides will sign a contract."

Iran, which was under a severe economic clampdown for several years over its controversial nuclear programme, emerged from the sanctions regime in January. Its airline industry is one of the key sectors Iran is looking to quickly modernise, as most of the aircraft in the civilian fleet are outdated.

In January, Iran Air agreed to purchase 118 planes from the European plane-maker Airbus in a deal worth $27bn.