Deal with ATR to provide Iran with 20 planes

Iran's Mehr news agency quoted Kashan as saying the flag carrier is taking an aircraft off of the Boeing production line that had originally been destined for Turkish Airlines.

The first passenger jet Iran has ordered from American planemaker Boeing, a 777-300ER, will join Iran's air fleet within a month, says deputy minister of roads and urban development Asghar Fakhrieh-Kashan. The airlines involved were not immediately available for comment.

Reuters cited industry sources saying delivery of the first aircraft may have been moved up because Turkish Airlines is "cash-strapped", which was supported by earlier reports last month.

The long-haul 777 is worth $347 million at list prices but is likely to have been sold for less than half that, according to industry estimates.

Boeing announced past year that Iran Air had orders for 80 Boeing aircraft - 50 narrow-bodied 737s and 30 long-range 777s - in a deal worth more than $16 billion.

The development comes after Iran struck deals with European aviation giant Airbus and the U.S. aviation company Boeing in 2016 to purchase about 180 jets.

The government of pragmatist President Hassan Rouhani is seen as keen to showcase results from the sanctions deal ahead of a May election at which challengers include hardline Shi'ite cleric Ebrahim Raisi. This is a third plane manufacturer after Airbus and Boeing had successfully signed lucrative deals with Iran.

ATR said on Sunday it was still in talks with IranAir.

  • Leroy Wright