Airbus Sells 100 Aircraft to Iran Air in $20 Billion Deal

Airbus announced that on Thursday, December 23, it signed a contract to sell 100 passenger aircraft to Iran Air (Homa). According to Reuters, Airbus stated in a release that under this contract, 46 A320 aircraft, 38 A330 aircraft, and 16 A350 aircraft will be delivered starting in early 2017. AFP reported the value of this contract to be around $20 billion. The U.S. Department of State's Office of Foreign Assets Control had issued a license for the sale of these aircraft to Iran in September and November of this year. John Kirby, spokesperson for the U.S. State Department, stated earlier in December: "The issuance of the license by the Treasury Department to Airbus is in line with Washington's commitments under the nuclear agreement, the JCPOA." Meanwhile, Farhad Parvaresh, CEO of Iran Air, told Fars News Agency that the first A321 aircraft will be delivered after the Nowruz holidays next year, and initially, three aircraft will be delivered. He added that "Homa" will receive about seven to eight aircraft from Airbus in 2017, and financial agreements for subsequent aircraft will be gradually made. Mr. Parvaresh had previously announced that the A380, the world's largest passenger aircraft, has been removed from the final contract. The Airbus A380 is the largest passenger aircraft in the world, but its use requires new facilities at airports. Several airports worldwide have also been updated and renovated to accommodate this aircraft. Last winter, the possibility of removing this aircraft from the final contract with Airbus was raised. During President Hassan Rouhani's visit to France last February, a contract was signed for the purchase of 118 Airbus aircraft worth €25 billion between the two parties. Meanwhile, according to the state newspaper "Iran," the first aircraft will be delivered in less than a month. Iran's passenger air fleet has become severely outdated and damaged over the past decades due to various sanctions. The nuclear agreement between Tehran and six world powers has breathed new life into Iran's air transportation. Following the nuclear agreement with the P5+1 group and the lifting of some sanctions, Iran has begun to modernize its air fleet. In this context, alongside the contract to purchase aircraft from Airbus, Iran Air and Boeing signed a final contract to purchase 80 aircraft worth $16.6 billion in Tehran on December 12. Boeing's deputy CEO stated that the company finalized the contract with Iran after receiving approval from the U.S. government. In this regard, a Ministry of Roads official stated that Airbus representatives are in Iran to finalize the purchase of 100 aircraft. The contract with Boeing presents challenges and prospects. Iran Air confirmed that the 100 Airbus contract has been finalized, and the A380 model has been removed. Leasing aircraft for the sky "is not related to current negotiations with Airbus." The Iranian Minister of Labor stated that the purchase of seven Airbus aircraft has been finalized.