Daily Management Review

Iran Likely to Seal Deal with Airbus for 114 Aircrafts During Rouhani’s Europe visit


Iran Likely to Seal Deal with Airbus for 114 Aircrafts During Rouhani’s Europe visit
114 aircrafts would be bought by Tran from European plane maker Airbus in a contract that is expected to be signed during the visit of President Hassan Rouhani to Paris this week.
This would be the for the first commercial deal that Iran would strike with the Western nations after the lifting of country’s landmark nuclear deal with major powers.
Rouhani’s government is determined to show Iranians the economic benefits of its diplomacy following the implementation of the nuclear accord last week and the lifting of many economic sanctions.
The first planes could join Iran’s ageing fleet as early as March, Abbas Akhoundi, Iran’s minister of transport, said.
More than 1200 lives have been lost to air disasters for Iranian fleet of aircrafts since 1980 as the average age of the aircrafts in operation is 25 years and the deal would represent an upgrade for the fleet.
 Akhoundi added at the Iran Aviation Summit 2016 in Tehran that Iran was also interested to buy aircraft from US plane maker Boeing.
 The conference was organised by Capa Centre for Aviation consultancy — a rare event in Iran with international standards — and attended by delegates from tens of European, Asian and regional airport and services companies as well as airlines, including Airbus, Lufthansa and Turkish Airlines.
Information about the type of Airbus aircraft, their age and value were not provided by the Iranian officials. The outcome of next week’s negotiations was also an issue that the Iranian officials were tightlipped about.
 “Please do not destroy the contract and let us continue our negotiations,” Farhad Parvaresh, head of Iran Air, the national carrier, told reporters.
“Do you understand that even catering is a big issue?”
Iran has agreed a breakthrough deal with six world powers to wind back the country’s progress towards building a nuclear bomb in exchange for a sweeping reversal of international economic sanctions after nearly a decade of isolation.
While reflecting the Islamic regime’s changing relations with the west after years of hostility, Rouhani’s visit to Europe will be the first for an Iranian president in more than a decade. It is expected to largely focus on opening Iran’s doors to European business.
Italy’s president, prime minister and the business community are on the list of the people that Rouhani is scheduled to meet after he leaves Tehran for Rome on Monday. He will also have a meeting with Pope Francis in the Vatican.
Italy and Iran hope the lifting of sanctions will help Italian companies, such as energy group Eni, return to Iran as Italy is a traditional trading partner of Iran.
After Italy, Rouhani is scheduled to meet his French counterpart, François Hollande, and investors in Paris.
French carmakers Peugeot and Renault are also in talks with Tehran to expand co-operation in addition to Airbus, Iran is also hoping to encourage Total to enter big oil and gas projects.
Iranian president hopes to attract up to $50bn in foreign investment annually. The key to that ambition are Europe’s banks and the corporate sector. The non-nuclear sanctions that Washington continues to impose on Iran still hold back the US companies.