Boeing defends Iran jet deal as new details emerge

Thu Jun 23, 2016 5:44pm EDT
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(Reuters) - Boeing Co (BA.N: Quote) defended dealings with Iran on Thursday as further details emerged of a draft deal to sell or lease 109 aircraft to the country's main carrier.

Two senior Republican House of Representatives lawmakers said on Friday they were concerned that Boeing's plans to sell aircraft to Iran could threaten U.S. national security.

Replying to Jeb Hensarling and Peter Roskam, a senior Boeing executive said the Obama administration had told it that implementation of last year's deal to curb Iran's nuclear activities in exchange for lifting most sanctions was "critical to the national security interest of the United States".

A "memorandum of agreement" (MOA) calls for IranAir to buy a total of 80 aircraft from Boeing and lease a further 29 with Boeing's support, according to the letter, seen by Reuters.

Deliveries of the purchased jets are scheduled to start in 2017 and run through 2025.

"Boeing negotiated the MOA under the authority of the U.S. government following its determination that Iran had met its obligations under the (nuclear agreement)," wrote Tim Keating, Boeing's senior vice president of government operations.

The aircraft to be sold directly include 34 wide-body jets: 15 each of the 777-300ER and 777-9 and four of the 747-8 models, one person familiar with the deal said.

The proposed sale also includes 46 narrow-body jets: 40 of the upcoming 737 MAX model and six of the current 737NG.

Under the same provisional deal, Boeing will arrange for IranAir to acquire a further 29 737NG aircraft through leases.   Continued...

The logo of Boeing (BA) is seen in Los Angeles, California, United States, April 22, 2016. REUTERS/Lucy Nicholson/File Photo