Iran said yesterday it will buy 114 Airbus planes to revitalise its ageing fleet, in the first major commercial deal announced since the lifting of sanctions under its nuclear agreement.

Transport Minister Abbas Akhoundi said a deal on the purchase would be signed between national carrier Iran Air and Airbus during a visit to Paris this week by President Hassan Rouhani.

Rouhani will travel to Italy and France from today to Wednesday, on his first visit to Europe since the implementation of the deal curbing Tehran’s nuclear activities in exchange for the lifting of punishing economic sanctions.

Rouhani has hailed the agreement as a “new chapter” for Iran as its economy returns to global markets.

Modernizing the country’s air fleet and infrastructure is a top priority, with Akhoundi saying yesterday that only 150 of the country’s 250 planes are operational.

“We have been negotiating for 10 months” for the purchase of planes but “there was no way to pay for them because of banking sanctions,” Iranian state media quoted Akhoundi as saying.

“We need 400 long- and mid-range and 100 short-range planes,” he said.

He said the first batch of new planes would arrive in Iran by March 19 but provided no financial details of the deal with Airbus.

An Airbus spokesman declined to comment.

Iran, with a population 79 million, has a good road network but still needs major transport upgrades, which Tehran hopes will boost tourism and trade.

Iran’s airports also need US$250 million worth of upgrades in navigation systems, Akhoundi said. Only nine of Iran’s 67 airports are currently operational.

Iran has suffered several air crashes in recent years blamed on ageing planes, poor maintenance and a shortage of new parts.

News of the Airbus deal came as aviation industry representatives from 85 companies met in Tehran yesterday to assess opportunities in the country after sanctions were removed.

“It’s a really exciting time, there’s never been a situation like this,” said Peter Harbison, the head of the CAPA consultancy which organized the conference.

“A whole array of different aviation services and new jobs obviously are going to be created,” Harbison said.

“Aviation is one of those industries that creates massive economic flow-on benefits, so tourism will expand, so you’ll need more infrastructure growth in hotels and right across the board.”

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