Iran remains keen to buy Tu-204, but cannot pay cash

Published: 7/13/1999

The Simbursky Kurier has reported that, on a recent visit to Iran, a delegation of the Ulyanovsk region Duma, headed by Sergei Ryabukhin, Chairman, concluded that, while Iran is keen to buy the Tu-204, manufactured by Aviastar, it cannot raise the money to do so. In spite of this prognosis, Ryabukhin told a press conference on July 5th 1999, that the visit made positive progress on political and economic fronts. According to Ryabukhin, the delegation convinced the Iranian government and the president that Aerostar and the regional administration would honour the memorandum of cooperation signed in 1998. The delay to the Iranian visit was owing to the need to bring Tu-204 into the domestic and international air passenger markets. This took twelve months. For its part, the Iranian government recognized the type certificate of Tu-204, granted by FAS of Russia, and promised to issue an official state document. This reportedly saves Aviastar some $250,000-300,000. It was confirmed that Iran would not service the Tu-204. This will be the responsibility of Aviastar. According to Iranian government sources, Iran needs 110 aircraft. This seems high although, as reported in Concise 2/11/99, Iran is keen to gain a substantive aerospace capability and is apparently interested in a number of projects, such as the manufacture, in Iran, of the Tu-334. As it cannot pay for its aircraft directly, other financing structures need to be explored. Ryabukin suggested that: "We could try aircraft lease with rentals paid not only by cash, but also by equipment, oil, etc". Concise considers that leasing is impractical, given the state of the Russian economy. If Iran is to pursue the Tu-204, a barter deal seems a more likely option.

Article ID: 679