Airbus Signs $25 Bln Deal to Sell 118 Planes to Iran

The agreement was signed during a visit by Iranian President Hassan Rouhani to France.

Iran has signed a deal to buy 118 Airbus planes worth $25 billion (EUR 22 billion; GBP 17.4 billion) at list prices in one of the biggest deals signed since Western sanctions against Tehran were lifted, according to the BBC.

The agreement was signed during a visit by Iranian President Hassan Rouhani to France, the BBC wrote.

The order included 73 wide body and 45 narrow body jets, including 12 A380 superjumbos.

Iran's decision to buy the A380 is a significant boost for Airbus.

The company has struggled to convince airlines to order the world's biggest passenger aircraft in the past two years.

Iran is also interested in buying planes from Boeing, Airbus's arch rival.

Transport Minister Abbas Akhoundi has estimated that his country will need 400 medium- and long-range planes, and 100 short-haul jets, in the next few years.

Iranian airlines have about 140 planes that are an average of 20 years old, with many needing to be retired.

Flag carrier Iran Air has three weekly flights to London and two to Paris and Amsterdam respectively.

It is also considering resuming direct flights to the U.S., which ended more than 30 years ago.

About one million Iranians live in the U.S., with the thousands who fly home every year forced to change in London, Amsterdam, Frankfurt, Istanbul or Dubai.

Iran Air chief executive Farhad Parvaresh said: "Today's announcement is a first step towards restoring the prestige of the civil aviation sector in the region, and alongside partners such as Airbus we will offer unparalleled services."

Several European airlines, including Air France-KLM, plan to resume flights to Iran this year.

Many European companies are lining up to strike deals with Iran following the lifting of sanctions.