Increasing Doubts About the Sale of Airbus A-380 to Iran

According to informed sources about the deal, although Airbus is trying to finalize a lucrative deal to sell about 200 aircraft to Iran, doubts have increased regarding the sale of several Airbus A-380s to Iran. According to Reuters, the purchase of new aircraft from Western companies is one of the biggest trading opportunities that has become possible for Iran after the lifting of sanctions related to its nuclear program. When the initial contract for the purchase of 118 Airbus aircraft worth $27 billion was signed in January during Iranian President Hassan Rouhani's visit to France, the inclusion of several double-decker Airbus A-380s in this contract received special attention. The deal was described as a symbol of improved relations with the West and Iran's plan to compete with the airlines of Gulf Arab countries that have these aircraft in their fleets. This order also revitalized the production plan for this Airbus model, which had been questioned due to a decrease in future orders, threatening to become the largest industrial project in Europe. However, informed sources say that Iran seems to have doubts about purchasing these aircraft. An Iranian official, who wished to remain anonymous, told Reuters, "We have always indicated that this is just one of the options and we may prefer other models instead." An informed source in the aviation industry also stated that Iran remains committed to other orders but shows less interest in purchasing the A-380s, which were partly ordered for political reasons. Other sources indicated that the order for the A-380s, valued at a total of $5.2 billion, can be changed without penalty according to the existing contract before their production begins. An informed source in the aviation industry acknowledged that despite Airbus's efforts to encourage Iran to purchase this model, which has seen slow sales, the section related to the A-380s had less certainty from the outset compared to other parts of the contract with Iran. Before finalizing this deal, Airbus must obtain the necessary export license from the U.S. government due to the use of American technologies in its aircraft. Another issue relates to the payment for this deal, as some banks are avoiding guaranteeing this transaction and also the purchase or lease of 109 aircraft from the American company Boeing by Iran Air. An Airbus spokesperson stated, "Negotiations are ongoing after the initial agreement with Iran Air regarding the sale of 118 aircraft signed in January, and like any other agreement, completing and signing it takes time." Iran Air has not yet officially commented on this issue. The CEO of the company told Reuters in February that the A-380s would not be ready for up to five years, during which time Iran Air would oversee the development of Imam Khomeini International Airport. While the future of the A-380 deal is in question, it appears that Boeing has managed to secure a new opportunity for its latest model of the 747 jumbo jets, which have also seen very weak sales. An informed source regarding Boeing's temporary contract with Iran Air mentioned that four units of the 747-8 model are included in the contract. As airlines shift towards smaller, twin-engine aircraft like the Airbus A-350 and Boeing 777, the production of both the A-380 and Boeing 777 models has decreased. However, sources familiar with the aviation industry in the Middle East say that given the experience of Iranian pilots and engineers in using older Boeing 747-400s during years of sanctions, the country is likely more prepared to utilize other models of the Boeing 747. Iran, as part of its extensive plans to modernize its transportation industry after the lifting of sanctions, has ordered a total of seven different models of aircraft from Airbus and Boeing. However, some experts are skeptical about the integration of new models into Iran's air fleet without improvements in infrastructure and marketing in the Iranian air passenger industry.