European airplane manufacturer signs $536mn deal with Iran

Aircraft manufacturer ATR has finalised a $536 million deal with Iran Air to purchase at least 20 aircrafts.

2 min read

14 April, 2017

Iran's first delivery of Airbus aircrafts in January 2016 [Getty]

French/Italian aircraft manufacturer ATR said on Thursday that it had it finalised a $536 million deal with Iran Air to purchase at least 20 aircrafts.

ATR spokesman David Vargas confirmed on Thursday that the deal has been finalised.

“They [aircrafts] will definitely help Iran Air to modernise and develop regional connectivity across the country,” Vargas said.

Vargas added that the deal consisted of Iran purchasing 20 ATR 72-600s aircrafts, and has also been given the option to purchase a further 20 in the future.

Iran Air had purchased ATR 72-600s aircrafts as a part of the airlines modernisation scheme. The aircraft has a turbo-engine and is known for its luxury interior, designed with wide seats for maximum comfort and larger overhead bins.

Though Vargas declined to give the overall value of the deal, the value of the confirmed purchases has accumulated to the value $536 million. Iranian state media said the deal was worth $400 million.

Tehran and ATR are sending contradicting reports on when the aircrafts will be delivered.

According to the Iranian ministry of roads and urban development, ATR will deliver the first 15 aircrafts within the next four days. Nine more will be delivered by the end of 2017, and the remaining seven will be delivered throughout the course of 2018.

ATR, however, said the delivery process will commence in a matter of weeks.

After international sanctions were lifted from Iran in January 2016, aviation companies across the world began to take advantage of the Islamic Republic’s announcement to update its aircrafts.

In March, Iran received its second set of post-sanction aircrafts from Airbus.