Iran to buy 114 Airbus aircraft following sanctions removal

Iran is planning to buy 114 aeroplanes from French manufacturer Airbus following the removal of sanctions by world powers.

On Saturday, Iranian minister of road and urban development Abbas Akhoundi was quoted by Tasnim News Agency as saying that the country had reached an agreement with Airbus for the aircraft to be provided to Iran Air.

Airbus had previously said it would not engage in commercial talks with Iran until sanctions had been lifted.

In a report, Reuters estimated the craft could be worth $10bn at catalogue prices, depending on the type.

Last April, Iran’s Civil Aviation Organisation said the country would need to buy up to 500 passenger planes in the next 10 years to renovate its ageing fleet.

Iranian airlines have a fleet of about 140 aircraft currently, which is below the international average for its population, the organisation said.

This could mean a windfall of $20bn in deals for Airbus and United States rival Boeing in the short term, according to Reuters, and significant lease orders until the aircraft are completed.