Airbus and Boeing eye opportunities in wake of Iranian nuclear settlement

Aircraft manufacturers Airbus and Boeing have raised their hopes of reshaping Iran's civil aviation industry after the country struck a deal with world powers on Tuesday over its nuclear programme.

Read more: Iran and world powers reach agreement on nuclear programme

Both companies were banned from selling aircraft and spare parts to Iran due to sanctions imposed by the United States.

Iran's road and transport minister Abbas Akhoundi commented in June, on occasion of the Paris Air Show, that the country would need about 400 passenger planes to renovate its fleets, investing at least $20bn. The move would be similar to the one made by Russia when its markets opened two decades ago.

The average age of Iran's planes is 27 years, mainly due to its use of A300s, which is the first aircraft created by Airbus as well as Boeing 747-200s delivered in the mid-1970s.

The country's national airline Iran Air was once the region's leading carrier, but saw its deals with international aircraft-makers cancelled in 1980 after the Iranian Revolution overthrew the Pahlavi dynasty from power, and replaced it with an Islamic regime.

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