Sunday, 26 March, 2017

5 reasons why a deal with Airbus is so important for Tehran

airbus-iran

A senior Iranian diplomat says that the huge deal signed between Iran and European plane maker Airbus was among the most important achievements of the July 2015 nuclear deal known as JCPOA.

In a post on his Instagram page, Iran’s ambassador to Britain, Hamid Baeidinejad said that “Despite all doubts existed about the possibility of a deal with France’s Airbus which continued even to the last moment, the preliminary contract was signed during Iran’s President Hassan Rouhani historic visit to Paris in January this year.”

According to Baeidinejad, such doubts indicated that the contract with Airbus is not a ordinary trade deal due to the following reasons:

1. The contract puts an end to the most long-standing sanctions against the Iranian aviation industry since the victory of the Islamic Revolution in Iran. For forty years Iran has been unable to purchase new aircraft.

2. The speedy implementation of the contract deserves attention. Seven or eight of the planes will be delivered to Iran in 2017.

3. Once the new aircraft join the Iranian air fleet, the country will witness a boom in its aviation industry. Last year, Iranians purchased tickets worth about $5 billion to foreign destinations all from foreign airline companies that in fact have taken over the Iranian market due to absence of enough aircraft. This is while in Iran we are suffering from unemployment among pilots and aviation industry engineers many of whom have been compelled to take jobs with foreign companies.

4. The deal, valued at about $20 billion and the credit for which will be provided in ten years through finance and sale of tickets, will result in the expansion of economic cooperation with Germany, France and Britain as the main Airbus partners. It will also play an effective role in improving banking and financial relations between Iran and a number of important European countries.

5. Though negotiations on the Airbus deal were conducted under particular conditions, the Iranian team managed to win good discount on the deal.

Airbus and Iran’s civil aviation carrier Iran Air signed the final contract for the purchase of 100 passenger planes, Airbus announced on its website on Thursday.

Describing the hefty contract as historic, the Europe-based multinational passenger plane producer said that based on the agreement between the company and the Iran Air, Iran can securely purchase 46 planes from the A320 family class, 38 planes from the A330 family class and 16 A350 XWBs.

The first batch of the passenger aircraft is expected to be delivered to the Islamic Republic of Iran in early 2017.

Iran Air Managing Director Farhad Parvaresh and Airbus Managing Director Fabrice Bregier signed the new contract on Thursday, the report said.

English language newspaper Iran Daily contributed to this report

Photo: Airbus chief executive Fabrice Bregier, right, head of Iran’s Civil Aviation Organization (CAO), Ali Abedzadeh, left, Iranian President Hassan Rouhani, background left, and French President Francois Hollande attend a bilateral agreements session, at the Elysee Palace, in Paris, Thursday, Jan. 28, 2016 (Stephane de Sakutin, Pool photo via AP)

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