It has been quite the week for Iran's economy. After having sanctions imposed upon it by the U.S. and other Western powers lifted following Tehran's completion of a historic nuclear deal, Iran has reportedly agreed to purchase 118 new aircraft from Airbus in a deal valued as much as $25 billion.
Thursday's deal, announced by Airbus, was reportedly signed at the Élysée Palace in Paris amid a raft of others during Iranian President Hassan Rouhani's visit with French President François Hollande, and it is dependent on the Iran obtaining U.S. export licenses, since more than 10 percent of the planemaker's jetliner parts come from the U.S., according to Reuters.
The deal means that the Iranian government likely negotiated significant discounts due to the bulk order, includes 73 wide-body and 45 single-aise airlines, 12 of which are jumbo A380s. Pilot and maintenance training, along with support services, are also included in the agreement.
"Today's announcement is the start of re-establishing our civil aviation sector into the envy of the region and along with partners like Airbus we'll ensure the highest world standards," Iran Air CEO Farhad Parvaresh said in a statement, according to CNN.
These purchases are key for Iran's re-entry into the "international civil aviation community." Due to the economic sanctions that had been levied against Iran over the past few decades, Iran Air had been unable to update its fleet or expand its service. As a result, Iran's current fleet had been falling apart, having an average age of 26.8 years.
"The skies have cleared for Iran's flying public and Airbus is proud to welcome Iran's commercial aviation back into the international civil aviation community," Airbus president and CEO Fabrice Brégier said in a statement, according to Business Insider.
"Today is a significant step in the overhaul and modernization of Iran's commercial aviation sector and Airbus stands ready to play its role in supporting it," he concluded.