The deal between Iran Air and Airbus signed in January 2016 has seen some recent progress. Iran’s Deputy Transport Minister Asghar Fakhrieh Kashan announced the positive news today, according to the Ministry of Roads and Urban Developments.
After several rounds of negotiations, Iran Air and Airbus have agreed on a final price for the 118 aircraft, financing plan and transaction method. The period of repayment has accordingly been set to 18 years.
This accord marks the end of financial issues with Airbus.
The Deputy Transport Minister noted that Iran succeeded to purchase the aircraft by 40-50% below Airbus’ standard price lists, thanks to “haggling” and an assorted selection of features. Furthermore, the 12 A380s included in the deal are optional and can be replaced by alternative models. However, in February 2016 Iran Air stated that the A380 order is “well-thought-out” and already has a firm future role in the airline.”
During the next week, Airbus officials are due to visit Tehran to negotiate the final legal aspects of the deal. The technical details, which already have been concluded, will be finalised during the visit next week.
Airbus is still, along with Boeing, awaiting the required export license from the American Government’s Office of Foreign Assets Control (OFAC) to complete the deal.