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Mon, Nov 24, 2003

Iran To Bolster Civil Fleet By Up To 60 Planes

Guess Who Gets The Contract?

The Iranian news agency IRNA reports Tehran is about to purchase 30 new aircraft for its civilian fleet. Ahmad Khorram, Minister of Roads and Transportation, says  "We are waiting for the Central Bank of Iran (CBI) to open the Letter of Credit (LC) at which time the planes will be delivered to the country within a year." He also warned that if the letters of credit are not opened by the next Saturday, the contracts will be void.

Who gets said contracts? Nobody in the West, that's for sure. Khorrad says ideology and the search for a bargain led Iran to the Russians. "We held negotiations with Russia to purchase Tupolev-204 jet planes which consume less petrol even than similar western types," he says. Khorran says the Tupolev-204s cost less than $28 million apiece, which he says is about half the price of similar western-build aircraft.

Khorran says another 30 aircraft are on option with the Russians, "Which again depends on the availability of (letters of credit). These planes have been built in 1995."

FMI: www.cao.ir

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