Iran's Deputy Transport Minister Asghar Fakhrieh-Kashan has confirmed delays in the finalization of a contract between Iran Air (IR, Tehran Mehrabad) and Avions de Transport Régional (Toulouse Blagnac) relate to a dispute with engine manufacturer, Pratt & Whitney Canada.

Speaking to the Iranian Students News Agency (ISNA) earlier this month, Fakhrieh-Kashan said several outstanding issues were still being negotiated with the Canadians given their concerns about how the PW127M powerplants will be used as well as after-sales support. No specific timeframe was given for their resolution.

Under its United Nations Act and Special Economic Measures Act, Canada imposed sanctions against Iran in 2010 in response to its nuclear and WMD programs.

ATR signed an agreement with Iran Air in February last year for forty ATR72-600s; twenty firm with twenty options. The contract has yet to be finalized unlike similar purchase agreements with Airbus (AIB, Toulouse Blagnac) and Boeing (BOE, Chicago O'Hare) which were both confirmed late last year.