TEHRAN, Iran—Airbus Group has finalized a deal to build 100 planes for Iran.
Iran Air Chairman Farhad Parvaresh and the European plane maker’s president and CEO, Fabrice Bregier, inked the deal in Paris Dec. 22.
“This is a landmark agreement not only because it paves the way for Iran Air’s fleet renewal”, Bregier said. “Our overall accord includes pilot training, airport operations and air traffic management so this agreement is also a significant first step in the overall modernisation of Iran’s commercial aviation sector.”
The deal comes after the Islamic Republic signed a milestone nuclear deal last year, lifting a number of international sanctions that had hampered its economy for years.
It also follows another major airliner purchase deal with Airbus’ chief rival Boeing Co. earlier this month. The 80-plane deal with the U.S. aerospace firm was worth US$16.6 billion, based on list prices.
Both major plane purchases will help the Middle East country replace its aging commercial airliners. Iran has been forced to ground a number of its planes in recent years because of a lack of spare parts.
The latest agreement includes 46 A320 jets, 38 A330s and 16 A350 XWB aircraft.
Airbus said deliveries will begin in early 2017.