HASH(0xba698c)

Airplane maker ATR signs $536M, 20-aircraft deal with Iran

Airplane maker ATR signs $536M, 20-aircraft deal with Iran

TEHRAN, Iran — European airplane manufacturer ATR said Thursday it sealed a $536-million sale with Iran Air for at least 20 aircraft, the latest aviation firm to strike a deal following Iran’s nuclear accord with world powers.

ATR spokesman David Vargas confirmed the finalized deal for the 20 ATR 72-600s, a twin-propeller aircraft, and said Iran Air had an option to purchase another 20.

“They will definitely help Iran Air to modernize and develop regional connectivity across the country,” Vargas told The Associated Press.

Home to 80 million people, Iran represents one of the last untapped aviation markets in the world. However, Western analysts are skeptical that there is demand for so many jets or available financing for deals worth billions of dollars.

Vargas declined to offer a value for the deal with Iran Air. The confirmed portion of the deal is worth $536 million at list prices, though buyers typically negotiate discounts on bulk orders. Iranian state TV described the deal as being worth about $400 million.

The deal also already has the approval of the U.S. Treasury, Vargas said. The Treasury must sign off on aircraft deals when at least 10 per cent of the airplanes’ components are of American origin. The Treasury could not be immediately reached for comment.

Farhad Parvaresh, the CEO of Iran Air, told the state-run IRNA news agency that the French-Italian company will deliver nine ATR 72-600s in 2017 and the rest in 2018. He said four of the aircraft will arrive within a month after signing the contract.

In February 2016, ATR signed an initial agreement to explore selling the aircraft to Iran Air. ATR is the Toulouse, France-based partnership of Airbus and Italy’s Leonardo S.p.A., which specializes in regional turboprop aircraft of 90 seats or less.

The ATR deal comes on the back of the nuclear agreement Iran struck with world powers, which saw Iran agree to limit its enrichment of uranium in exchange for the lifting of economic sanctions.

That deal allowed airplane manufacturers to rush into the Iranian market.

Boeing Co. has already made a $16.6 billion sale already to Iran Air, while its European rival Airbus signed one estimated to be worth some 22.8 billion euros ($25 billion). The Treasury has signed off on both those deals.

Chicago-based Boeing also signed a $3 billion deal earlier this month to sell 30 737 MAX aircraft to Iran’s Aseman Airlines, a firm owned by Iran’s civil service pension foundation. The Boeing sales represent the first major deals for an American company in Iran since the 1979 Islamic Revolution and U.S. Embassy takeover.

U.S. politicians have expressed concern about the airplane sales to Iran. President Donald Trump remains skeptical of the atomic accord overall and has threatened to renegotiate it, without offering specifics.

___

Online:

ATR: www.atr-aircraft.com

___

Gambrell reported from Dubai, United Arab Emirates. Associated Press writer Adam Schreck in Dubai contributed to this report.

Nasser Karimi And Jon Gambrell, The Associated Press

Just Posted

‘Listen to your gut’ urges injured skier

Mike Shaw was told he’d never walk again after an accident four years ago, but he defied the odds

Families of missing Shuswap women call for action

Birthday of missing woman Ashley Simpson remembered during rally in Yankee Flats

Nasty note on windshield sparks online outrage

Vernon’s Bailey McDonald is using a painful experience to start conversation about invisible illness

CPR a vital link in saving man’s life

Vernon man’s life saved by strangers performing CPR following heart attack on golf course

High-risk offender faces weapons charges

Suspect arrested in Salmon Arm, accused of threatening to kill father, burn down family home.

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

Pine beetles from Jasper National Park moving into commercial forest

In 2014, beetle activity went from a few spots around Jasper’s townsite to rampant

VIDEO: Tragically Hip members, Alex Trebek receive Order of Canada

Newest recipients join 6,897 Canadians such as Christine Sinclair, Graham Greene and Mark Messier

AC/DC’s Malcolm Young dies at 64

‘Malcolm was a songwriter, guitarist, performer, producer and visionary who inspired many.’

‘I will now live in consistent fear’: Allan Schoenborn granted escorted leaves

The Merritt man was deemed not criminally responsible in the killing of his three children in 2008

Guns and drugs seized in Kamloops RCMP blitz

Kamloops Mounties and the gang unit seize drugs and make arrests in two-day blitz

Hammy the deer dodges conservation officers in Prince Rupert

The famous Prince Rupert hammock deer maintains his purple threads

‘No shirt, no service, no Canada’

Shirtless Tacoma man arrested after Canadian border officials say they found meth in rental vehicle

Most Read