Airbus in talks with Iran over deal to produce aircraft part

IRAN hopes to be making parts for Airbus Group SE aircraft under plans being discussed following January's historic agreement to purchase 118 jetliners from the European manufacturer, reports Bloomberg News.

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.

Iran developed an ability to make aircraft parts to keep its planes flying during years of economic sanctions.

Iranian Aviation and Space Industries Association President Amin Salari said in an interview in Tehran that it can offer both "a level of know-how - and very competitive labour 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 US$7.5 billion worth of orders from the European company and its US rival Boeing Co. through 2030.

Iran has 15 maintenance and overhaul companies, a third of them state-owned, Mr Salari said, with capabilities in areas including cabin refurbishment, aircraft seats, fibre-glass parts and cockpit panels.