“Airbus Deal Not Worth $25b”, Delivery of 14 Aircraft in 2017

New information has been revealed by Iran Air’s CEO Farhad Parvaresh in an interview with Farsnews.

The final agreement between Iran Air and Airbus regarding the 118 aircraft deal should have been signed in February, but has been postponed till July 2016 due to various factors. Along side, the agreement with ATR is still discussed with Airbus as the company owns 50% of ATR.

The Iran Air CEO disclosed that it is Airbus’ responsibility to find banks that are willing to finance the deal and two banks from Germany and France have preliminary agreed to do so.

According to the agreement with Airbus, 15% of the financiation will be done by Iran Air and 85% by the agreed foreign banks. The ATR deal will be financed 100% by foreign banks that ATR have been in contact with. The Airbus financiation will be paid back to the respective banks within 10 to 18 years, or even more, he stated.

An aircraft delivery schedule has been created and agreed. In 2016, 5 A320s and A330s will be delivered along with 3 ATR72-600s. In 2017, the delivery number will increase to 14 aircraft and until 2024 all the 45 A320s, 45 A330s, 16 A350s and 12 A380s should be delivered to the national carrier. The first ATR delivery will take place in November 2016 and all of the 20 ATRs will be on Iranian land by 2020. The option of 20 ATR72-600s that Iran Air placed simultaneously with the order of 20 aircraft will be ordered during 2021, making Iran Air an owner of 40 ATR aircraft by then.

No official price for the 20 ATR aircraft have been announced, but according to hearsays that can not be confirmed, the price is €400m.

The pre-agreement of 118 aircraft which was signed in January 2016 states that the value of the agreement is $25b, however this information is called incorrect by the Ministry of Road and Urban Developments which claims that the real value is only $10,5b.

Photo: Airbus