Iran struggles with jet deals

16 February 2017

Deals for more than 200 jets signed or being negotiated

Iran is pushing for the delivery of a second Airbus passenger jet before 20 March, the end of its fiscal year, as deals with the US’ Boeing and French-Italian ATR struggle due to uncertainty in the US political landscape.

The country’s national carrier Iran Air has received the first of 106 jets on order from Airbus, an A321, on 12 January. It received the jet following one year of negotiations, and weeks after the final contract was signed and a $100m down payment was made.

Iran Air’s deal for 80 aircraft with the US’ Boeing, signed in the second half of 2016, appears less secure.

While the transaction has been cleared by former US president Obama, it is unclear whether the new administration under President Donald Trump will endorse or reverse the sale, which US lawmakers have strongly opposed.

The Islamic Republic is also understood have reached the final stages of negotiations with ATR for 20 short-haul aircraft. The deal could cost an estimated $570m based on list price.

However, the signing of a final contract is seen as contingent upon US approvals since the ATR planes use engines manufactured by the Canadian subsidiary of US’ Pratt & Whitney.

Iran’s smaller privately-owned airlines are awaiting delivery of new planes as well.

Kish Airlines has said it expects four short-haul jets from Brazil’s Embraer to be delivered before 20 March. Apart from the order with Embraer, the airline is also understood to have purchased two Airbus A320 aircraft in 2016.

Aseman Airlines said it plans to lease seven Airbus A320neo planes from an Irish firm once the initial agreement with the Irish Aviation Authority (IAA) has

The Irish Aviation Authority has recently signed a cooperation agreement with Iran to provide “technical expertise and assistance in the areas of flight operations management, airworthiness, and aircraft MRO”.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications