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 Iran to buy 114 Airbus planes from France: minister
Iranian minister of transportation Abbas Ahmad Akhoundi (R) speaks during the CAPA 2016 Iran Aviation Summit in the capital Tehran on Sunday. Photo: STR/AFP

Iran to buy 114 Airbus planes from France: minister

AFP · 24 Jan 2016, 15:57

Published: 24 Jan 2016 15:57 GMT+01:00

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Abbas Akhoundi, quoted by Iranian media, said the deal "will be signed between Iran Air and Airbus" when Rouhani is in Paris on Wednesday on the final day of his first official European visit.

Rouhani's trip follows the implementation of a nuclear deal with world powers that curbs Tehran's atomic activities in exchange for the lifting of punishing economic sanctions.

Iran desperately needs to modernise its ageing passenger plane fleet, which has only 150 operational planes out of more than 250, according to Akhoundi.

"We have been negotiating for 10 months" for the purchase of planes but "there was no way to pay for them because of banking sanctions," Iranian state media quoted Akhoundi as saying.

"We need 400 long- and mid-range and 100 short-range planes," he added.

The first batch of new planes will arrive in the country by March 21, he said.

Iran, with a population 79 million, has a good road network but still needs major transport upgrades, which Tehran hopes will aid tourism.

Rouhani is to visit Italy and France on January 25th-27th to boost Iran's economic ties with Europe.

Iran currently has no deals in place with American manufacturer Boeing "because of problems with negotiating with the US," according to Akhoundi.

State television said the US Treasury had not yet permitted Boeing to enter talks with Iran, "but we will definitely negotiate with this company too," the minister added.

Apart from new planes, Iran's airports also need $250 million (230 million euros) worth of upgrades, he said.

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Only nine of Iran's 67 airports are currently operational.

The Islamic republic on Saturday signed a $2 billion contract with China to electrify the railway line linking Tehran with second city Mashhad, Akhoundi said.

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