Iran Air to Make Initial Decision on Plane Financiers in a Month

EghtesadOnline: Iran Air will begin the decision-making process on the long list of bids submitted by Iranian and foreign parties to finance multi-billion dollar orders the flag carrier has placed with major world planemakers within a month, says Iran Air’s new CEO Farzaneh Sharafbafi.

News ID: ۷۴۳۲۹۶

15 August 2017

“We are in the stage of choosing financiers,” she was quoted by IRNA as saying on Tuesday.

Iran Air has signed firm contracts with US jetmaker Boeing, its European rival Airbus, as well as with French-Italian manufacturer of turboprop aircraft ATR to buy a total of 200 planes worth tens of billions of dollars.

The state-run airline has received seven of its ordered planes so far, including three Airbus and four ATR. The delivery of the rest hinges on provision of financing for the purchases, Financial Tribune reported.

Although a 2015 nuclear deal with world powers led to removal of sanctions the following year, big European banks have since been shying away from Iranian deals due to fear of potential US penalty amid uncertainty in the policies of President Donald Trump, who has shown tendency to pull out of the nuclear deal.

Earlier, Iran said it was planning to hold a tender to find financiers, expressing confidence that proper partners will be found and chosen.

“ATR has expressed interest in financing 20 of the orders,” Sharafbafi noted.