Airbus chief executive Fabrice Bregier (R), Iran Air chief Executive Farhad Parvaresh (L), Iranian President Hassan Rouhani (Rear L) and French President Francois Hollande attend a bilateral political, cultural and economic agreements signing ceremony with the Iranian President (not pictured) and Iranian officials at the Elysee Palace in Paris on January 28, 2016 in Paris. President Hassan Rouhani hailed a "new relationship" between Iran and France during a visit on January 28 that saw the signing of a host of post-sanctions business deals. AFP PHOTO / POOL / STEPHANE DE SAKUTIN / AFP / STEPHANE DE SAKUTIN

MIAMI — Iran Air has inked in Paris a purchasing agreement with Airbus for 118 aircraft, including 12 A380s, marking the beginning of a new era in Iran’s aviation market, and providing Airbus a much needed customer for its A380 superjumbo program.

The agreement, subscribed by Mr Farhad Parvaresh, Iran Air Chairman and CEO, in presence of presidents Hassan Rouhani of Iran and François Hollande of France, would be worth US$25 billion at list prices, and is to date the biggest order placed since the beginning of the Islamic Revolution in 1979. The deal includes 45 narrowbodies aircraft (21 A320ceo, 24 A320neo) and 73 widebodies (27 A330ceo, 18 A330-900, 16 A350-1000 and 12 A380-800).

Today’s announcement is the start of re-establishing our civil aviation sector into the envy of the region and along with partners like Airbus we’ll ensure the highest world standards.” said Mr Farhad Parvaresh, Iran Air Chairman and CEO.

Besides the large aircraft order, the deal also includes a comprehensive cooperation agreement in which Airbus will play a role supporting the modernization of air traffic control services, airport operations and aircraft maintenance, regulatory harmonization and technical and academic training and industrial cooperation.

“Today is a significant step in the overhaul and modernization of Iran’s commercial aviation sector and Airbus stands ready to play its role in supporting it,”  said Fabrice Brégier, Airbus President and CEO.

Due to economic sanctions imposed against Iran over the past decades, the country’s flag carrier was unable to expand its service and update its fleet, which currently has an average age of 26.8 years, according to Airfleets.net. The deal announced today is one of the first results of the lifting of international sanctions after Iran agreed to curb its nuclear program.

Airbus Gets a Major A380 Customer

The sale of a dozen new A380s represents a major victory for Airbus, which has gained a second customer in 2016. The last year, the superjumbo experienced two order cancellations from Japanese carrier Skymark and Russia’s Transaero, plus deferrals from Air Austral and Virgin Atlantic, which combined with a drought of orders have raised concerns over the future of the program.