Iran Air Secures Financing for 47 Aircraft; 12 Airbus Deliveries in 2017

Last week, Iran Air signed a deal with Boeing and the negotiations with Airbus are drawing to an end. Asghar Fakhrieh Kashan, Deputy Minister Roads and Urban Development, has clarified some information in an interview to the Ministry.

One of the largest obstacles for Iran to engage with the world, alongside with financing, is the political instability that exists. All possible risks such as re-imposition of sanctions have been evaluated and the possible measures have been agreed.

If an aircraft has been manufactured, we will take delivery of it. If an aircraft is in the process of assembling, we will discuss the matter.

Iran Air is set to welcome the first Boeing aircraft in 2018 and the last one ten years later. Although Boeing already had thousands of other orders in place prior to Iran Air’s order, the aircraft will be produced in between the production gaps. With a delivery rate of 8 aircraft in 2018 and an average of 10 the other years, Iran Air will have sufficient time prepare the needed infrastructure and labour force.

Several media outlets have quoted that 6 of the aircraft ordered from Boeing will be financed by the aircraft manufacturer itself. This does not, however, mean that the American company will finance the aircraft themselves. The persisting American sanctions against Iran prohibit Boeing to do so. Instead, it is in that sense that it gives Boeing the authority to find any suitable financing method for the 6 earmarked aircraft, let it be foreign or American. The transactions must still go through a foreign bank, due to the existing conditions.

In 2017, Airbus and ATR will deliver 10-12 aircraft to Iran Air. A reduction from 14 aircraft which was previously reported in May 2016. This could be partially explained by the reduced number of aircraft in the Airbus deal since the Memorial of Understanding signed in January 2016.

According to Kashan, Iran Air has secured financing for 5 out of the 80 ordered aircraft. As per aforementioned, Boeing is liable to secure financing for 6 aircraft, the rest is Iran Air’s obligation. Also, 42 out of the 100 aircraft shortly planned to be ordered from Airbus have secured financing, 19 of which Airbus arranged financing for.

Furthermore, he announced that Iran has created a group of specialists consisting of officials from Iran’s Vice-Presidency for Science and Technology, President of the Iranian Space Agency and aircraft manufacture companies to lead the negotiations with Airbus to commence the production of spare parts in Iran.

 

Photo: Mohammad Akhlaghi, Tasnim News Agency