Iran's flag carrier finalized a major deal with U.S. plane maker Boeing Co. to buy $16.6 billion worth of passenger planes Sunday in one of the most tangible benefits yet for the Islamic Republic from last year's landmark nuclear agreement.

Iran Air's deal for 80 jetliners is the biggest agreement Iran has struck with an American company since the 1979 revolution and U.S. Embassy takeover. It has the potential to transform Iran's creaking and accident-prone aviation industry, which has been hobbled by years of sanctions.

Those curbs have prevented the country from buying new planes from Chicago-based Boeing and European rival Airbus, and in many cases made it difficult for Iranian airlines to secure much-needed spare parts.

The deal covers 50 single-aisle 737 Max 8s, a soon-to-be-introduced version of Boeing's existing narrow-body 737 line.

It also includes 30 777s, a wide-body, twin-engine plane typically used on long-haul routes that is popular with other Persian Gulf carriers such as Dubai-based Emirates. Half of the order will cover the 777-300ER version, while the rest will be of the 777-9 model still under development.

Iran's state-run IRNA news agency said the planes would be delivered over the next decade. The first will start to arrive in 2018, Boeing said.

In September, Washington granted permission to Boeing and Toulouse, France-based Airbus to sell billions of dollars' worth of aircraft to Iran. Airbus needed U.S. approval because at least 10 percent of its planes' components are of American origin.

The U.S. and other world powers agreed last year to lift crippling sanctions on Iran in exchange for it curbing its nuclear activities. The U.S. still maintains extensive sanctions on Iran for activities unrelated to its nuclear program.

President-elect Donald Trump and several Republican lawmakers have criticized the nuclear deal, but it's unclear whether they would scrap the agreement, which was reached with Britain, France, Germany, Russia and China.

Iranian Transport Minister Abbas Akhoundi, who attended the signing ceremony, said it was a "historic" day for Iranian aviation and that the deal would create 8,000 jobs for Iranians.

"The deal has a clear message for the world: we support peace and security as well as the growth of Iran based on a win-win policy," he was quoted as saying. "We hope that despite changes in the U.S. administration, the country will remain loyal to its commitments.

The Republican-led House of Representatives last month voted to bar commercial aircraft sales to Iran in a move that could block the Boeing deal. That legislation must still pass the Senate, where it will likely face opposition from Democrats. U.S. President Barack Obama has said he will veto the bill if it reaches his desk before he leaves office on Jan. 20.

Boeing made a point of saying it worked closely with the U.S. government throughout the deal-making process and will continue to "follow all license requirements." The Iran Air deal "will support tens of thousands of U.S. jobs" linked to the 777s alone, it said.

The plane maker said the deal value was based on list prices, though in practice customers typically negotiate discounts for bulk orders.

Most of Iran's aging fleet of 250 commercial planes was purchased before 1979, and as of June only 162 were operational, with the rest grounded because of a lack of spare parts. Iran Air, whose website lists a fleet of 43 planes, offers direct flights to over 30 international destinations, including London.

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Schreck reported from Dubai, United Arab Emirates.</s>Boeing has finalized its agreement to sell 80 airplanes to Iran Air, despite staunch opposition from many lawmakers, including President-elect Donald Trump.

Iran Air will be getting 50 737 airplanes and 30 777s, the first of which will be delivered in 2018. The deal was originally signed in June.

The total value of the deal is $16.6 billion -- by far the biggest between U.S. and Iranian businesses since the 1979 revolution, which shut off normalized relations between the countries.

The sale was made possible by the Obama administration's lifting of economic sanctions on Iran in September. Shortly after the deal was signed, the Treasury Department approved the delivery of Boeing (BA) and Airbus passenger planes to Iran.

Boeing needed special approval to ensure that Iran doesn't use the planes for military purposes.

In addition to the 80 planes that Boeing will make for Iran Air, Boeing also received a license to "help Iran Air find" 29 other Boeing aircraft from leasing companies.

European aviation giant Airbus, which is Boeing's principal business rival, has a deal with Iran Air for 118 planes.

Iran is working to modernize a fleet that is among the oldest and most dangerous in the world. Years of sanctions left Iran's airlines with outdated and unsafe aircraft. The sanctions were lifted after Iran agreed to curtail its nuclear program.

Many sanctions against Iran still remain. For example, the U.S. continues to block companies from doing business with Iran in U.S. dollars. This has complicated the financing of these huge plane contracts, since many banks are concerned about working with Iran.

For the latest news about Boeing, follow the Boeing stream on the CNN MoneyStream app

Trump has been among the loudest voices of opposition to the lifting of sanctions on Iran, calling it "one of the worst deals the U.S. ever negotiated."

Earlier this week, Trump threatened to cancel Boeing's contract to build the next generation Air Force One, claiming it cost too much. Boeing and other U.S. companies fear Trump's campaign promises of protectionist trade policies, which could undermine efforts by American manufacturers to sell products to new markets around the world.

Boeing said the airplane sales to Iran Air will directly support tens of thousands of U.S. jobs. The company noted that 100,000 Boeing employees will be involved with making good on the deal.</s>TEHRAN, Iran (AP) — Iran said Sunday it has finalized a $16.8 billion deal with Boeing to purchase 80 passenger planes, a deal made possible by last year’s landmark nuclear agreement.

The state-run IRNA news agency said 50 Boeing 737s and 30 Boeing 777s would be delivered over the next decade, in the biggest agreement to be struck with an American company since the 1979 revolution and U.S. Embassy takeover.

Boeing had no immediate comment.

In September, Washington granted permission to Boeing and its European competitor Airbus to sell billions of dollars’ worth of aircraft to Iran. The U.S. and other world powers agreed last year to lift crippling sanctions on Iran in exchange for it curbing its nuclear activities.

President-elect Donald Trump and several Republican lawmakers have criticized the nuclear deal, but it’s unclear whether they would scrap the agreement, which was reached with Britain, France, Germany, Russia and China.

Iranian Transport Minister Abbas Akhoundi, who attended the signing ceremony, said it was a “historic” day for Iranian aviation and that the deal would create 8,000 jobs for Iranians.

“The deal has a clear message for the world: we support peace and security as well as the growth of Iran based on a win-win policy,” he was quoted as saying. “We hope that despite changes in the U.S. administration, the country will remain loyal to its commitments.”

Most of Iran’s aging fleet of 250 commercial planes was purchased before 1979, and as of June only 162 were operational, with the rest grounded because of a lack of spare parts. Iran Air, whose website lists a fleet of 43 planes, offers direct flights to over 30 international destinations, including London.

Iran Air CEO Farhad Parvaresh said the first Boeing plane is expected to arrive in April.</s>Iran Air said it signed a deal on Sunday to buy 80 passenger planes from U.S. aircraft maker Boeing ( ), state news agency IRNA reported.

The agency quoted Farhad Parvaresh, the head of the country's flag carrier, as saying that the 10-year deal included 50 Boeing 737 aircraft and 30 777 planes.</s>CHICAGO (dpa-AFX) - Boeing (BA) and Iran Air announced an agreement for 80 aircraft that includes 50 737 MAX 8s, 15 777-300ERs and 15 777-9s, valued at $16.6 billion at list prices.



Based on its Memorandum of Agreement (MOA) with Iran Air announced in June, the contract was reached within the terms of the U.S. Government license issued to Boeing in September.



Boeing said it coordinated closely with the U.S. Government throughout the process leading up to the sale and continues to follow all license requirements as it moves forward to implement the sales agreement.



Today's agreement will support tens of thousands of U.S. jobs directly associated with production and delivery of the 777-300ERs and nearly 100,000 U.S. jobs in the U.S. aerospace value stream for the full course of deliveries. The first airplanes under this agreement are scheduled for delivery in 2018, Boeing said.



Copyright RTT News/dpa-AFX</s>An Iran Air Boeing 747 passenger plane sits on the tarmac of the domestic Mehrabad airport in Tehran on January 15, 2013 (AFP Photo/Behrouz Mehri)

Tehran (AFP) - Iran Air finalised a contract to buy 80 planes from Boeing, the US aerospace firm confirmed on Sunday, as it seeks to renew its ageing fleet despite sanctions.

Boeing said the contract -- Iran's first deal with a US aviation firm since the 1979 Islamic revolution -- was worth $16.6 billion (15.7 billion euros).

"Fifty of the planes are 737 and the other 30 are the long haul 777 that will be delivered to Iran Air in a period of 10 years," said Farhad Parvaresh, chief executive of the national carrier, who signed the contract with Boeing officials in Tehran.

With the incoming administration of US president-elect Donald Trump expected to take a tough line on Iran and American lawmakers recently voting for renewed sanctions, Boeing emphasised the employment opportunities of the deal.

"Today's agreement will support tens of thousands of US jobs directly associated with production and delivery of the 777-300ERs and nearly 100,000 US jobs in the US aerospace value stream for the full course of deliveries," the company said in a statement.

Many US lawmakers have opposed the deal, accusing Iran Air of helping to transport troops and weapons to conflict zones around the region.

The lack of new planes and parts has taken a severe toll on Iran's carriers over the years, earning it one of the worst safety records in the world with close to 1,700 people dying in a string of civilian and military air disasters since 1979, according to the Flight Safety Foundation.

"With the signing of this contract, the first important step has been taken for the modernisation of the country's aviation fleet," Transport Minister Abbas Akhoundi was quoted as saying.

The first Boeings are due to arrive in 2018 and Iran Air is also due to finalise the purchase of 100 planes from European firm Airbus.

"Our goal is to increase our ability to compete in the aviation industry to be able to get back our share in the transport industry in the region and the world," said Akhoundi, referring to the fact that Iran was a regional hub for air transport before the revolution.

Following initial agreements earlier in the year, the Boeing and Airbus deals were given final approval by the US government in September.

Washington lifted some of its sanctions on Iran under a nuclear deal that came into force in January, but many restrictions have remained in place that mean companies trading with Tehran must receive explicit approval from the US Treasury.

That includes European firms like Airbus who manufacture some of their parts in the United States.

Pressure has been mounting on those in Iran and the United States who want to see increased trade between the two countries in order to cement the nuclear deal.

Iranian leaders have reacted angrily to news that Washington will renew its existing sanctions in the coming days, saying it is a breach of the deal, while Trump has vowed to rip up the accord entirely.

Iran's President Hassan Rouhani has faced a barrage of criticism at home after the deal failed to attract the level of foreign investment he promised -- mostly because global banks remain wary of doing business with the country.

The supreme leader, Ayatollah Ali Khamenei, has questioned the focus on purchasing billion-dollar fleets of aircraft.

"Suppose we modernise our air fleet. Okay, it's a very important and necessary move. But is it the priority?" Khamenei said in June.</s>The agency quoted Farhad Parvaresh, the chairman of Iran's flag carrier, as saying that the 10-year deal included 50 Boeing 737 aircraft and 30 777 planes.

Boeing said in June it had signed a tentative agreement to sell 100 jets to IranAir after Iranian statements about the deal.

IRNA said that Fletcher Barkdull, a Boeing regional director, was in Tehran for the signing ceremony. The agency quoted Barkdull as saying that the deal was worth $16.6 billion and had been approved by the U.S. government.

In November, the U.S. House of Representatives passed a bill intending to block the sale of commercial aircraft to Iran, that would bar the U.S. Treasury from issuing licenses that U.S. banks would need to finance sales of commercial aircraft.

Congressional Republicans are making efforts to counter last year's nuclear accord between Iran, the United States and other world powers, that eased sanctions on the Islamic Republic.

The Boeing deal would help modernize and expand the Iran's ageing fleet, kept going by smuggled or improvised parts after decades of sanctions.</s>A day after finalizing a deal with Iran Air for 80 aircraft, Boeing says it is cutting output next year of its long-range 777 airliner.

As Boeing (BA) wades into the murky political waters of selling planes to Iran Air, the company suggested the rate for its most profitable big airliner might have dropped further without the deal.

Today, Boeing builds 100 777 airliners each year and that will drop to pace of 60 annually, or five each month, starting in August. It previously announced plans last year to cut to just seven per month next year, as it struggled to secure enough orders.

"Several ongoing twin-aisle campaigns...haven't concluded in time to keep the rate steady," wrote Elizabeth Lund, Boeing's 777 program vice president.

The company expects job losses as a result of the cut, but Lund said, "The exact number of affected positions has not been determined." Thousands of jobs are tied directly to production of the 777 in Washington state.

Included in the Iran Air agreement are 15 current-generation 777-300ER jetliners. Those would be the first new Boeings delivered to Iran Air starting in 2018.

The deal with Iran Air will find itself in the political cross hairs as President-elect Donald Trump weighs the future of the nuclear agreement and its provisions that allow Western firms to sell to Iran.

The Boeing deal will face intense political opposition when Congress returns in January.

"There is strong opposition on Capital Hill to this deal and strong opposition on an incoming basis with the new administration to this deal. I think the likelihood of those Boeing planes ending up in Iranian hands diminishes by the day," Congressman Peter Roskam, one of the deal's chief opponents, said Monday.

Boeing's deal with Iran was not enough to prevent the latest cut, said Lund, but it did keep the rate from going lower.

"The decision to reduce rate, however, already factored [the deal with Iran Air] into our assessment of the near term market landscape," said Boeing's 777 Vice President Elizabeth Lund in a message to employees Monday.

The 777 airliner is the backbone of global international air travel and the production rates are closely watched by investors as they gauge the company's profit. Today's news has been long expected by investors, but exactly how low the rate would fall was not clear.

For Boeing's finances, each 777 brings in between $120 million to $160 million in revenue.

Boeing is entering a major transition for the 777 airliner, switching production over to the heavily updated 350-to-400 seat 777X, which won't start carrying passengers until 2020. In October, Boeing's chief executive said that as it produces the first 777X test airplanes in 2018, it will only build on average three and a half aircraft for delivery each month.</s>Den häftiga attacken från Donald Trump mot Boeing nyligen fick nyss sin förklaring.

Iran Air ska köpa 80 plan från Boeing till ett värde av 80 miljarder USD.

Boeings VD försvarade nyss USAs frihandelspolitik och uppenbart ingår även stormakternas Iranavtal i det han vill ställa sig bakom.

Det ska bli intressant att se hur Trump reagerar på detta:

Boeing said the deal will support tens of thousands of U.S. jobs directly associated with production and delivery of the 777s and nearly 100,000 U.S. jobs overall. The first airplanes under this agreement are scheduled for delivery in 2018. In September, Washington granted permission to Boeing and its European competitor Airbus to sell billions of dollars' worth of aircraft to Iran. The U.S. and other world powers agreed last year to lift sanctions on Iran in exchange for it curbing its nuclear activities.</s>The deal between IranAir and U.S. planemaker Boeing includes 50 narrow-body 737 MAX aircraft and 30 long-haul 777s, split equally between the 777-300ER, which is badly in need of an order boost, and the 406-seat 777-9, which is under development.

An Iranian official told Reuters that IranAir was also at the "very final stage" of formalizing a deal with Europe's Airbus, which led Western companies back into Iran with a provisional agreement for 118 planes when Tehran emerged from global sanctions in January.

The Airbus deal, which is expected to involve a first batch of 50-60 jets, should be completed in the next couple of days, the official said.

Also closing in on a deal to renew Iran's aging fleet, kept going by smuggled or improvised parts after decades of sanctions, European turboprop maker ATR said it had received U.S. approvals needed to finalize the sale of up to 40 aircraft.

The Boeing contract, the biggest Iran-U.S. deal since the fall of the Shah, clears a major technical hurdle toward implementing last year's pact between Iran and world powers to reopen trade in return for curbs on Iran's nuclear activities.

However, political opposition could yet threaten a deal that would provide a welcome boost to Boeing's order book after a year in which it has lagged behind rival Airbus.

Congressional Republicans are trying to counter last year's nuclear accord, with the U.S. House of Representatives passing a bill last month seeking to restrict financial transactions by U.S. banks in an effort to block the sale of Western passenger jets to Iran.

The Iranian official said the Boeing deal was subject in part to further agreements on financing, but added that money from the deal would not pass through the U.S. financial system.

Financial sources said Boeing has a financing plan for 15 777-300ER jets, which are expected to be delivered from 2018, but the rest of the financing may still have to be negotiated.

Sunday's move could also test relations between America's top exporter and U.S. President-elect Donald Trump, days after he complained about the cost of new Boeing "Air Force One" jets.

Because of the length of the 10-year deal, some U.S. export licenses may need to be extended during Trump's administration. The president-elect, who opposes last year's nuclear sanctions deal with Iran, has also rattled Boeing by sparring with China, which accounts for a fifth of the company's deliveries.

A Boeing statement said the Iranian contract would support tens of thousands of U.S. jobs for the 777-300ER jets and nearly 100,000 U.S. aerospace jobs for the whole package.

In Iran the deal is viewed as a crucial political test for the government of pragmatist President Hassan Rouhani, who has been criticized by hardliners opposed to opening up to the West.

The first Airbus aircraft are expected to reach Iran in 2017. Iran's presidential elections are due in May.
Iran Air finalises a deal with U.S. aircraft manufacturer Boeing to purchase 80 jetliners for $16.6 billion.