France’s Airbus is considering a number of industrial cooperation agreements with Iran that are understood to include aircraft component production and maintenance and overhaul.

A regime of economic sanctions that largely disallowed the sale of new planes, spare parts and modern aviation technologies into Iran is thought to have helped Iran’s aviation sector develop an ability to make plane parts to keep its fleet flying.

“Tehran can offer both a level of know-how and very competitive labour costs,” said Iranian Aviation and Space Industries Association President Amin Salari, according to a Bloomberg report.

If negotiations result in an agreement, Iran will join Strata, a Mubadala company, as a Middle East parts supplier to Airbus.

The plant facility discussion between Iran and Airbus follows the $27bn order for 118 jetliners signed in January, when most international sanctions against Iran were lifted.

US rival Boeing has yet to secure a licence to sell its aircraft into Iran, although it has been cleared by the US government in February to begin talks with approved airlines about their fleet requirements.