Asghar Fakhrieh Kashan

Airbus agrees to finance 37 aircraft for Iran

MNA – Deputy Roads Minister Fakhrieh Kashan said manufacturing companies have already funded a number of airplanes purchased by Iran’s flag-carrier airliner Iran Air in the post-JCPOA era.

Deputy Minister for International Affairs at the Ministry of Road and Urban Development Asghar Fakhrieh Kashan reported on financing sources of aircraft added to Iran Air (Homa) fleet following implementation of the Joint Comprehensive Plan of Action (JCPOA) saying “three financing sources have been envisaged for these aircraft which were purchased through deals between Iran Air and three manufacturing companies.”

One method was to use make advance payments using the National Development Fund while the second option was to use financing sources of manufacturers as they have agreed to fund a number of planes until the year 2020, said the official adding “the third approach pertained to leasing companies, banks, and international financial and credit institutions which are known worldwide as aircraft financers.”

He reiterated that supplying finances through manufacturing companies remains as an alternative option in case international leasing companies refrain from entering the Iranian market. “For instance, ATR is scheduled to undertake financing of 12 aircraft, Airbus will also finance 37 airplanes in 2 phases; Boeing will also fund 8 aircraft, all of which have their deliveries scheduled for 2020.”

Deputy minister of roads and urban development in international affairs went on to stress that, so far, of the total 200 airplanes purchased from ATR, Airbus and Boeing, 11 have landed in Iran which comprise eight ATR and three Airbus passenger planes.

Fakhrieh Kashan highlighted that, with the exception of the three companies, no other contract has been sealed with other airplane manufacturers; “nevertheless, other Iranian airlines have negotiated with other manufacturers and have even signed contracts though OFAC has issued no license for those purchases yet.

In December 2016, Boeing sealed deals with Iran’s flag-carrier airliner Iran Air over sales of 80 jets valued at $16.6 billion. They include 50 narrow-body Boeing 737 passenger jets and 30 wide-body 777 aircraft.

Meanwhile, Iran Air concluded another deal with Airbus to purchase 100 planes, three of which have been delivered.

Iran also signed a deal on the purchase of 20 ATR 72-600 with ATR as a third aircraft manufacturer after having signed lucrative deals with Airbus and Boeing following the implementation of the nuclear deal.