Post sanctions, Iran to buy 114 jets from Airbus, to raise oil output

Dubai/Paris - Airbus not engaging in commercial talks with Iran until sanctions lifted.

Iran plans to buy 114 civil aircraft from European aircraft maker Airbus, the transport minister was quoted as saying on Saturday, 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.
Sanctions were expected to be lifted in the wake of a recent agreement on Iran's nuclear activities later on Saturday, as diplomats gathered in Vienna and Iran said it had freed four US citizens from jail.
"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.
A deal for 114 airplanes would be worth more than $10 billion at catalogue prices, depending on the type of aircraft.
Such a purchase would be in line with the predictions of Iranair, whose chairman told Reuters in an interview 18 months ago that, as soon as sanctions were eased, Iran would seek to obtain at least 100 wide-body and short-haul jets.
Iranian and Western industry officials estimate that Iran, a country of 80 million people, will need a total of 400 or more aircraft in the next decade to renew an ageing fleet that has suffered several fatal crashes in recent years.
For France-based Airbus, its main US rival Boeing and other manufacturers, that could mean an early windfall of $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.
While the historic nuclear deal was still being negotiated, with Paris taking a tough stand, French firms were initially pessimistic about reaping the first wave of eventual contracts.
Meanwhile, Iran's representative to the Opec producers' group said the country is determined to raise its oil output as planned as soon as sanctions on its oil industry are lifted.
Mehdi Asali appeared to strike a defiant tone, contradicting earlier comments from other senior Iranian oil officials that Iran would not flood the market at a time of global oversupply and an oil price crash. Oil Minister Bijan Zanganeh said this month Iran would not seek to distort markets but would make sure it regained its market share.
But the state news agency IRNA quoted Asali as saying: "We have not moderated our plans regarding increasing output when sanctions are lifted. It will be increased by 500,000 bpd (barrels per day), and by another 500,000 bpd shortly after that."
He said Iran had no intention of entering an oil price war with rival producers.
But a full return of Iran to the international oil market could put it on a collision course with Saudi Arabia and other Gulf members, who have been resisting trying to shore up prices by cutting output.
The world is now producing 1.5 million barrels a day more than it is consuming, with Iran promising to add another million bpd over the next 12 months.

• MENA