November 24, 2016


Iran's mega deal with Airbus inches closer to finalization (Changiz M. Varzi, November 23, 2016, Al Monitor)

On Nov. 23, Shahrvand daily ran the article "106 Airbus [jets] on the way to Iran," which reported the new development to boost trade between Western companies and Iran. "Despite the attempts by the US House to revoke the permission [to sell aircraft to Iran], a delegation from Airbus is now in Tehran to finalize the deal between Iran and the aviation company," wrote Shahrvand.

Meanwhile, business daily Abrar-e Eqtesadi said that Iran had reached an agreement with an international leasing company to facilitate the purchase of 77 Airbus planes. According to the daily, Asghar Fakhrieh Kashan, deputy for international affairs at the Ministry of Roads and Urban Development, announced, "The final contract to buy 112 Airbus [jets] is ready to be signed."

Iran provisionally agreed to purchase 118 Airbus jets in January. This figure dropped to 112 after an order for six smaller Airbus jets was discarded over delays in OFAC licensing of the sale. The final number of plane deliveries may be around a hundred, given that Iran says it may not proceed with its option to purchase a dozen A380s, the world's largest jetliner.

The news about reaching a financing deal with a foreign leasing company is a breakthrough in efforts by Iranian companies to ink contracts with a major international firm. One of the main obstacles keeping international banks and business away from Iran is the ongoing hassle of transferring money to and from Iran due to remaining Western sanctions. Iranian officials have not disclosed the name of the leasing company, but industry sources have previously said that Iran has asked UAE company Dubai Aerospace for assistance with financing the purchase of the first 17 Airbus jets.

The beauty of it is, all Tehran has to do is approve a Trump hotel project and he'll lift all the remaining sanctions.

Posted by at November 24, 2016 10:12 AM