Iran reaches deal to buy 114 passenger planes once sanctions lifted

TEHRAN, Iran -- Iran has reached a deal with the European consortium Airbus to buy 114 passenger planes once international economic sanctions are lifted as part of a nuclear deal, Iran's transport minister said Saturday.

See Full Article

Abbas Akhondi was quoted by the official IRNA news agency as saying that the first shipment of planes will arrive in Iran before March 20 to upgrade Iran's aging fleet. Iran has said it is looking to buy 400 passenger planes over the next decade.

"An agreement was reached with Airbus to buy 114 planes to gradually enter carrier Iran Air fleet upon the lifting of sanctions," IRNA quoted Akhondi as saying.

He said an unspecified number of planes will arrive before Nowruz, Iran's new year, which falls on March 21.

Airbus did not confirm a formal agreement with Tehran. The company released a statement pointing out that the sanctions have yet to be lifted and the nuclear agreement has yet to be implemented. "Once it is, we will evaluate the commercial implications in strict compliance with any international accord," the statement said. "Airbus Group remains ready to support Iranian civil and para- public transportation sector development in strict compliance with all international laws."

Iran is already waiting for the imminent release of a U.N. compliance report that would trigger the lifting of sanctions under a landmark deal reached with world powers last July over the Islamic Republic's nuclear program.

Iran's aviation industry has suffered as a result of sanctions over the past three decades. Out of Iran's 250 commercial planes, about 150 are flying while the rest are grounded due to lack of spare parts.

Akhondi said Iran is already planning to also renovate its aviation industry by leasing planes since the country's airlines lack the financial liquidity to buy too many aircraft at once. He urged Iranian carriers to take steps to upgrade their fleets in the post-sanctions era.

"With the implementation of the nuclear deal, we will enter a new atmosphere in our interaction with the outside world and subsequently develop our aviation industry," he said.

Associated Press writer Lori Hinnant in Paris contributed to this report.



Advertisements

Latest Economic News

  • Credit agency pushes feds to give it access to list of social insurance numbers

    Economic CTV News
    OTTAWA -- An international credit reporting agency is pushing the federal government to give it access to a monthly list of new social insurance numbers despite years of rejections over privacy concerns. TransUnion made the request anew earlier this year, shortly after Patty Hajdu became labour minister, to access the list that contains the range of social insurance numbers issued each month in various regions of the country. Source
  • Canadians set record with U.S. real estate shopping spree

    Economic CBC News
    New Brunswick's Joel Levesque had no idea he was helping set a record when he bought a home in Fort Myers, Fla., back in April. The 63-year-old semi-retired public affairs professional wanted a place to escape for the winter and didn't feel like waiting around for the loonie to gain ground on the greenback. Source
  • Debt got you down? Start a debt-destruction club

    Economic CBC News
    If you run, hide, or plug your ears every time the topic of money comes up, you're not alone. But as the era of ultra-low interest rates comes to an end, you need to force yourself to face your finances. Source
  • Ontario transit agency won't let Bombardier bid to operate commuter trains

    Economic CTV News
    MONTREAL -- Ontario's transit agency has decided not to appeal a court ruling favouring Bombardier but will exclude the Montreal-based company from bidding to continue operating GO Transit trains as it has done for decades. Source
  • Business groups blast Ontario labour proposals on last day of consultations

    Economic CTV News
    TORONTO -- Unions and advocacy groups made one last effort Friday to sway the Ontario government on its plan for sweeping changes to the province's labour laws, with some sounding the alarm about what they deem drastic measures and others arguing the proposal doesn't go far enough. Source
  • Marijuana companies band together to develop marketing guidelines

    Economic CTV News
    TORONTO -- Sixteen of Canada's licensed marijuana producers have enlisted the help of Advertising Standards Canada to develop guidelines on how the drug should be branded and promoted before its recreational use becomes legal next year. Source
  • Husky Energy set to repair pipeline that spilled crude into river a year ago

    Economic CTV News
    CALGARY -- Husky Energy (TSX:HSE) says it has been granted permission to repair and replace a section of pipeline that leaked 225,000 litres of crude in Saskatchewan just over a year ago. Chief executive Robert Peabody said that it will be applying lessons learned from the spill on the rebuild. Source
  • Ford says it will fight latest Takata recall

    Economic CTV News
    DETROIT -- Ford is fighting the latest expansion of the Takata air bag inflator recall. Earlier this month Takata filed documents with the U.S. government adding 2.7 million vehicles to the recall from Ford, Nissan and Mazda. Source
  • FedEx to close all Office Print and Ship Centres across Canada

    Economic CTV News
    FedEx Canada has announced that it will be closing all of its FedEx Office Print and Ship Centres, across Canada. All 24 centres, the manufacturing plant, and the head office in Toronto will close. Source
  • Car buying pushes retail sales up for third month in a row in May

    Economic CBC News
    Strong auto sector activity helped Canadian retail sales activity rise for a third straight month in May, climbing by 0.6 per cent to $48.9 billion, Statistics Canada said Friday. The monthly increase was double the consensus expectation of economists Source