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.

According to Press TV, the two sides signed a preliminary agreement worth more than $27 billion in January for Iran's purchase 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 including a 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 ensure that their interests are taken into account,” he said.

The official also said 80 percent of financial issues have been resolved and negotiations are underway to resolve the remaining problems.

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

Tehran is seeking to upgrade its aging fleet of aircraft following last year’s nuclear agreement between Iran and the 5+1 group of countries.

SS