NEW YORK (Dispatches) — Boeing said Friday it has received the green light from the Obama administration to study the commercial airplane market in Iran as it eyes opportunity following the lifting of nuclear sanctions.
"We have applied for and received a license to assess the current commercial passenger airplane needs of U.S. government-approved Iranian airlines,” Boeing said.
"The license permits us to engage approved airlines to determine their actual fleet requirements.”
The license frees Boeing from some of the restrictions of sanctions the U.S. continues to place on Iran over rights and terrorism accusations.  
Boeing said it is working to keep up with rivals Bombardier and Airbus. Airbus in January secured a deal to sell Iran 118 planes for about $25 billion.
"We understand that the situation in the region is complicated and ever-changing and we will continue to follow the U.S. government’s guidance as it relates to conducting business with Iran,” Boeing said.
Western manufacturers were barred for nearly two decades from selling aircraft or equipment and spare parts to Iranian companies.
That embargo is blamed for crippling the country’s aviation industry. Iran’s civil aviation fleet is now around 140 aircraft, with an average age of around 20 years, and many are in desperate need of replacement.
The restrictions were partly lifted by an interim agreement on Iran’s nuclear program that came into force in January 2014, and Boeing that year obtained U.S. licenses to sell airplane parts in Iran.
In January of this year, nuclear-related sanctions on the country were lifted following the international nuclear agreement. However, "primary” sanctions that remain in place still largely ban U.S. companies from business with Iran without the special exceptions or licenses issued by the U.S. Treasury.
The Treasury has said they would permit companies to sell commercial aircraft on a licensed basis in Iran.
Boeing had been a notable no-show as Iran’s aviation market re-opened, skipping a January aviation gathering in Tehran and causing Iran Air Chairman Farhad Parvaresh to suggest that the company was "lagging behind a bit.”  
Boeing shares fell two percent to $115.16 Friday, the worst performance among the 30 members of the Dow Jones Industrial Average. The stock had dropped 19% this year through Thursday.
As part of the sanctions lifted Jan. 16, the U.S. Treasury’s Office of Foreign Assets Control established procedures to allow the sale of wide-body, narrow-body, regional and commuter planes, along with related parts, for passenger travel. Many other transactions are still banned, including selling cargo planes, state aircraft, drones, and military planes.
Boeing faces risks and uncertain rewards as it vies with Airbus and others to replace Iran’s museum-vintage fleet.  
General Electric, the world’s largest maker of jet engines, has also applied to do business in Iran, said Rick Kennedy, a spokesman for the company’s aviation unit. The license would cover new-equipment sales as well as maintenance and repair work, where engine manufacturers make most of their money.
GE’s application was submitted in preparation for opportunities arising as the airframers open talks, Kennedy said. GE Aviation, through its CFM International joint venture with France’s Safran SA, makes engines powering many aircraft including Boeing’s 737 and models in Airbus’s A320 family.
Despite Airbus’s head start, there is still opportunity for Boeing to nab sales of its wide-body 777-300ER jets. And uncertain financing prospects for Iran’s carriers combined with deliveries spread out a decade or more have some skeptical that all of the sales in the Airbus pact will materialize.
"It’s what we used to call a letter of enthusiasm,” said Adam Pilarski, a former aerospace executive who is now senior vice president with consultant Avitas Inc. "It’s not even a letter of intent.”
Boeing has ample time to carve out its foothold in Iran, Pilarski said. "This is a big market. They need lots of planes.”