ran's official news agency IRNA has reported that Iran is set to order 114 commercial aircraft from Airbus. The announcement came following the official lifting of international trade sanctions on Iran.
Iranian Minister of Roads and Urban Development Abbas Akhoundi was quoted by IRNA as saying that first deliveries from a selection of wide and narrowbody aircraft could start as early as July 2016.
Iran has some 250 commercial aircraft on its books, but because of sanctions applied by the US on the sale of new aircraft, the average age of the fleet is estimated to be around 20 years. A significant proportion of these are unserviceable and grounded due to lack of parts to keep them flying.
International trade sanctions were lifted on Iran at the weekend by the European Union and the US. They had been in place for many years because of Iran’s nuclear developments and military policies. The EU lifted all restrictions on trade, shipping and insurance while the US announced a phased-in process. However, within a day of the announcement, the US issued new sanctions on Iran. There did not appear to be any reversal by the EU, so it’s probable that a deal with Airbus could still proceed. There has been no confirmation of a deal beyond the IRNA report, however.
If the order does go ahead, it could be worth several billion dollars to Airbus, even if the aircraft were not new models.
Akhoundi said any deal would likely be made on a leaseback model, as the key airlines in Iran have low liquidity - and even with a removal of sanctions the cost of buying would be too high, according to the IRNA report.
The aircraft buying spree would coincide with the development of new infrastructure across the country, with $8 billion earmarked for airport redevelopment.
The potential Airbus deal would come on the back of a Mahan Air deal in May 2015 when the carrier took delivery of eight used Airbus A340s despite opposition from the US government.
Shortly after the Mahan Air deal, Akhoundi said he would visit the Paris Air Show to meet manufacturers and discuss future sales pending the lifting of sanctions.
Iran's flag carrier, Iran Air, flies a mixture of 1970s-developed Airbus and Boeing aircraft, including 14 Airbus A300 series and five Boeing 747s.