PARIS: Airbus signed a firm contract on Thursday for the sale of 100 aircraft to Iran Air, as Tehran and Western companies race to reopen trade almost a year after sanctions against Iran were lifted.
Airbus said the contract, which Iran flagged earlier this week, covered 46 Airbus A320 planes, 38 A330 planes and 16 A350 XWB aircraft, with deliveries due to begin in early 2017.
The head of Iran Air was quoted on Sunday as saying the value of the contract would not be more than $10 billion.
“This is a landmark agreement not only because it paves the way for Iran Air’s fleet renewal,” said Fabrice Bregier, Airbus President and Chief Executive Officer. “Our overall accord includes pilot training, airport operations and air traffic management so this agreement is also a significant first step in the overall modernisation of Iran’s commercial aviation sector,” he added.
The timetable suggests the first Airbus A321 could arrive before the January 20 inauguration of US President-elect Donald Trump, who has opposed the deal to lift most sanctions on Iran in exchange for curbs on its nuclear activities, and well ahead of Iranian presidential elections in May next year.
Airbus shares were down 0.8 per cent in mid-session trading, with the stock up by around 1 per cent since the start of 2016.
The deal, part of plans to renew the airline’s decaying fleet, comes against a backdrop of criticism by conservatives in Washington and Tehran of last year’s international agreement to allow such business after decades of sanctions.
Sanctions were lifted in January but were followed by months of regulatory delays, and Iran has only just finalised a deal to buy 80 jets from Airbus’ US rival Boeing.
