Japan to fund Iran’s purchase of MRJs

Japan to fund Iran’s purchase of MRJs

Iran says Japan has agreed to fund a plan to purchase passenger planes from its industrial giant Mitsubishi Heavy Industries.

Iran’s Deputy Transport Minister Asghar Fakhrieh-Kashan has been quoted by the media that the agreement has been reached during a recent visit to Tokyo by an Iranian delegation.

Fakhrieh-Kashan added that based on the agreement, the government of Japan would fund the purchase of Mitsubishi planes based on a scheme known as build-operate-transfer (BOT).

The official further added Japan has agreed to provide the fund to make the purchase without any guarantees from the Iranian government.

Fakhrieh-Kashan also said that Japan has signed an agreement with Iran’s Ministry of Economy and Financial Affairs to provide Iran with a loan of $10 billion. He said the mechanisms on how exactly to use the loan will be decided during an upcoming visit to Tehran by a delegation from Japan’s Ministry of Land, Infrastructure, Transport and Tourism.

Japan’s Nikki newspaper reported in mid-July that Mitsubishi Aircraft – the aviation arm of Mitsubishi Heavy Industries – is negotiating with Iran to provide the country with its Regional Passenger Jets (MRJs) that are currently under development.  It said the company had started surveys over the Iranian market last September – several months before the US-engineered sanctions against Iran were lifted.

It said the company has been negotiating over jet sales with Iran’s flag carrier Iran Air and Iran Aseman Airlines, as well as the country’s aviation authorities.

Iran Air is weighing purchasing 80 70-seat MRJs and using them for domestic routes, Nikki added.  

To the same effect, Fakhrieh-Kashan was quoted by the media in late July that Aseman Airlines will purchase 25 MRJs.  He added that the value of the purchase will be around $500 million.