29 Mar 2024
Monday 16 May 2016 - 13:26
Story Code : 214160

Iran starts negotiations with Airbus to sign plane purchase contract



Iran has begun negotiations with Airbus to finalize the first major deal for purchase of passenger planes since 1979, a senior Iranian official says.

The two sides signed a preliminary agreementworth more than $27 billion in Januaryfor Iran'spurchase of 118 planes from Airbus during a landmark trip to Paris by President Hassan Rouhani.

We started negotiations with Airbus to sign the contract three days ago, and we hope to reach a conclusion and ink the deal, Deputy Transport Minister Asghar Fakhrieh-Kashan said on Monday.

However, no date has been set for the signing, he said, adding the contract is a 500-page document includinga large number of items which will take time to sort out.

Each page of the deal should be examined because it contains various financial, legal, and administrative issues, and the two sides should ensurethat theirinterests are taken into account, he said.

The official also said80 percent of financial issues havebeen resolvedand negotiations are underway to resolve theremaining problems.

The orders are being made in the form of hire purchase under which acompany will be founded to buy the plane from Airbusso that domestic companies are not involved.

Tehran is seeking to upgrade its aging fleet of aircraft following last years nuclear agreement between Iran and the P5+1 group of countries.

In January, Fakhrieh-Kashan said Iran also planned to purchase over 100 planes from US plane maker Boeing.

The official said Irans order list from the American company included 737s for domestic flights and two-aisle 777s for long-haul flights.

Irans Transport Minister Abbas Akhoundi said in January that Airbuss first deliveries to flag carrier Iran Air were due as early as July.

Irans current civil aviation fleet consists of 248 aircraft with an average age of 20 years, of which 100 are grounded.

Officials have saidthe country would need 500 commercial jets of various models for various short-, medium- and long-distance routes.

By Press TV

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