Negotiations with Boeing for Aircraft Services in Iran

Ali Abedzadeh, the head of Iran's Civil Aviation Organization, announced on Sunday, April 29, that recent negotiations with representatives of Boeing in Tehran emphasized the company's services for existing Boeing aircraft in Iran. Mr. Abedzadeh confirmed the quality of Boeing aircraft by the Civil Aviation Organization, stating, "Boeing, like other aircraft sellers, is willing to negotiate with Iranian companies, but discussions were held regarding providing services for existing Boeing aircraft in Iran." Last week, representatives from Boeing, including the regional sales manager along with service, support, and financial officials, traveled to Iran to discuss how to sell Boeing passenger aircraft with Iranian officials. Simultaneously, on Sunday, Abdolreza Mousavi, a board member of Zagros Airlines, told Fars News Agency that Boeing would introduce 2 to 4 models of its aircraft for sale to the company by mid-week. Mr. Mousavi pointed out the challenges Iran faces in purchasing aircraft in the current post-sanction conditions, adding, "If Boeing can resolve the issues of sales licenses, technical support, and financing for aircraft purchases, Zagros Airlines is ready to buy 50 to 55 aircraft from various models produced by this company." He also mentioned that "currently, there is no possibility for transferring money for aircraft purchases, nor is there any money available, and we face issues with insurance and maintenance of aircraft, so we must act realistically." Last week, Maqsoud Asadi Samani, the secretary of the Association of Airlines, referred to a two-day negotiation by a Boeing delegation with Iranian airlines in Tehran, stating, "This aircraft manufacturer proposed new series of 737, 787, and 777 aircraft for sale to Iran through financing from foreign sources. However, Boeing officials in New York told AFP that any agreement with Iran must receive final approval from Washington. According to John Dern, a Boeing spokesperson, the meeting of the company's representatives with Iranian Civil Aviation Organization officials in Tehran helped to gain a better understanding of the status of Iran's air fleet. Regarding the arrival of the first Airbus purchased, Ali Abedzadeh also mentioned that, "Based on negotiations with Airbus, agreements were made in this regard, but securing financial resources is one of the important issues of this contract." The Deputy Minister of Roads and Urban Development of Iran stated that "resolving financial issues is time-consuming," adding, "Companies are negotiating, and this issue cannot be resolved quickly, but certainly, with the resolution of these issues, the arrival of Airbus aircraft in the country will take place." Iran and France signed 20 contracts and memorandums of understanding during President Hassan Rouhani's visit to France last year, with the purchase of 118 Airbus aircraft worth $25 billion being one of the most significant contracts. Currently, one of the main problems in selling aircraft to Iran is the currency issue. Any aircraft purchase and sale requires Iran to be able to access global dollar markets, a challenge that Western banks still face in financing commercial contracts with Iran due to fears of U.S. penalties. Barack Obama, the U.S. President, issued a license for the sale of passenger aircraft to Iran following the nuclear agreement between Iran and six world powers last year. The U.S. had banned the sale of passenger aircraft to Iran after the hostage crisis of its diplomats in Tehran in 1979. In this context, the uncertainties surrounding Boeing's sale of aircraft to Iran continue.