Aviation news analysis
50 SKY SHADES - World aviation news

Iran Drops A380s in Airbus Deal

Download: Printable PDF Date: 18 Dec 2016 12:23 categories:
Publisher:
Iran Drops A380s in Airbus Deal  - Airlines publisher
Tatjana Obrazcova
Country: Iran Aircraft: Airplanes
Source: Bloomberg

Airbus Group SE suffered a blow to its already troubled A380 program when Iran, which had previously suggested it would buy the double-decker planes, said it had dropped the model as part of a wider fleet upgrade.

Iran reduced its order with Airbus to 100 planes in a contract that will no longer include A380s, Farhad Parvaresh, Iran Air’s chief executive officer, said in a press conference in Tehran. This will shrink the original $27 billion deal for 118 jets, including 12 A380s. A team from Airbus is currently in Tehran for talks on the deal.

"Given there are now 100 planes in the contract, I don’t think that the overall value will exceed $10 billion, and that’s at the very most. The A330 was part of the deal from before and it still is, but there will be no A380," Parvaresh said. "There is no A380 at the moment, it’s just an option,” Parvaresh told reporters after a press conference in Tehran.

Airbus has already cut production of its superjumbo by more than half, to one plane a month by 2018, as demand has dwindled. Dubai-based Emirates is the only carrier to give the giant aircraft a major role in its fleet. Iran, which is updating its aging fleet after U.S. sanctions were eased, is one of the few remaining untapped markets in which the plane-maker and rival Boeing Co. are competing for orders.

Iran is prepared to fund the first $1 billion tranche for the planes in Airbus and Boeing contracts, said Asghar Fakhrieh-Kashan, the country’s deputy transport minister for aviation. Half of this will come from foreign financing, primarily through a leasing company. The remaining half will be raised via various sources, including $330 million from Iran’s sovereign wealth fund called the National Development Fund and $120 million from a domestic sukuk issuance.



Loading comments for Iran Drops A380s in Airbus Deal ...


Recommended

TAG Aviation Introduces First Bombardier Global 5000 Aircraft Equipped with Premier Cabin Destined for Charter Service in Europe

The long range Global 5000 aircraft will be based in Paris and represents the ninth addition to TAG Aviation’s rapidly growing managed fleet of business jets registered in Europe...

Subaru and Bell announce collaboration on commercial 412 helicopter upgrade

THE SUBARU BELL 412EPX INTRODUCED AS PART OF JAPAN UH-X PROGRAM  At a ceremony held at Farnborough Air Show, BELL HELICOPTER, a Textron Inc. company and SUBARU Corporation announced their...

Japan Coast Guard signs HCare Smart for its H225 fleet

Airbus’ material management programme will cover the maintenance of all ten helicopters over five years.​ Japan Coast Guard (JCG) has signed with Airbus Helicopters for an HCare Smart full-by...

AW169 helicopter grows stronger in UK EMS market with selection by Magpas Air Ambulance

• Specialist Aviation Services (SAS) will customise and operate an AW169 on behalf of Magpas Air Ambulance starting from spring 2019    • This will be the ninth UK-based AW169 f...