Iran's state airline, which has just reached an agreement with Boeing Co to purchase new jetliners, can resume flights in the EU, the European Commission said on Thursday.

Iran is dangling the prospect of significant business for Western plane-makers as it emerges from decades of sanctions.

"I am happy to announce that we are now also able to allow most aircraft from Iran Air back into European skies," said EU Transport Commissioner Violeta Bulc. The Commission said the decision followed a visit to Iran by the EU executive in April.

Iran Air will be allowed to fly all of its planes in the EU except the Boeing 747-200s, Boeing 747SPs and Fokker 100s, the Commission said.

Iran needs an estimated 400 jets to renew its fleet and prepare for projected growth, according to Iranian and Western estimates.

Tehran said on Tuesday that it had reached an agreement with Boeing for the supply of jetliners, reopening the country's skies to new U.S. aircraft for the first time in decades.

The Iranian flag carrier also agreed in January to buy 118 jets worth $27 billion from Airbus and is discussing further orders with Boeing.

(Source: Reuters)