Airbus in talks with Tehran over production of plane components
Airbus’s Middle East office said the company is evaluating areas of industrial cooperation with Iran that may include component production and maintenance and overhaul work, Bloomberg reported.
Iran developed an ability to make plane parts in order to keep its aircraft flying during years of economic sanctions.
President of Iranian Aviation and Space Industries Association Amin Salari said in an interview in Tehran that it can offer both “a level of know-how” and very competitive labor costs.
Should an agreement be reached, Iran will join Mubadala Development Co.’s Strata unit as a Middle Eastern parts supplier to Airbus. The Abu Dhabi-based business, which began operations in 2010, has $7.5 billion worth of orders from the European company and its US rival Boeing Co. through 2030.
Countries funding major aircraft purchases are in a stronger position to seek a share of the work, with the vast orders placed by United Arab Emirates carriers Etihad Airways and Emirates bolstering Mubadala’s hand. Iran, which wants to develop its aviation industry, says it may need 400 jets in a decade.
Iran has around 15 maintenance and overhaul companies, a third of them state-owned, Salari said, with capabilities in areas including cabin refurbishment, aircraft seats, fiber-glass parts and cockpit panels. ■