Iran To Buy 114 Airbus Aircraft - Report

Iran plans to buy 114 aircraft from Airbus, the transport minister was quoted as saying, ahead of the anticipated lifting of international sanctions on Iran.

"We have taken the first step in agreeing with Airbus to buy 114 planes," Abbas Akhoondi was quoted as saying by the Tasnim news agency.

Airbus said it was not engaging in commercial talks with Iran until sanctions had been lifted.

"Although Iran clearly has a need for new aircraft, we must conform strictly to the law and, until all measures concerning the embargo are lifted, no commercial discussions can take place," an Airbus spokesman said.

Iranian and Western industry officials estimate that Iran, a country of 80 million people, will need 400 or more aircraft in the next decade to replace a fleet that has suffered several fatal crashes in recent years.

That could mean a windfall of USD$20 billion in deals, while leasing companies may also benefit due to long waiting times.

Some Iranian officials have said the country is ready to place orders for at least 100 jets with both Airbus and Boeing.