Iran Air has signed an agreement with turboprop manufacturer ATR for 40 ATR 72-600 aircraft, following a 118 aircraft order it placed with Airbus last week.
The deal, valued at €1bn ($1.1bn), includes firm orders by the state-owned carrier for 20 aircraft and 20 options.
It was signed following discussions in Paris and Rome between ATR, Iranian government officials and the Italian and French state.
The new agreement is announced just days after Iran Air signed a $25bn deal with Airbus for a range of aircraft types comprised of 45 narrowbodies and 73 widebodies.
Patrick de Castelbajac, CEO of ATR, said the 72-600 aircraft will help “reinforce and boost regional transportation across the country.”