Updated

Iran's national air carrier has signed an agreement to buy 20 new passenger airplanes with an option for 20 more from French-Italian aircraft manufacturer ATR one week after the airline signed a deal to buy 118 aircraft from Airbus.

In an announcement, the company says the deal was signed with Iran Air on Monday and includes a firm order for 20 ATR 72-600. The Tehran-based private Donya-e Eghtesad daily says the deal is worth $1.089 billion.

Tehran says it is also interested in buying passenger aircraft from American manufacturer Boeing.