Iran aquired over 100 Agusta-Bell Model 206 types (206As and 206Bs, license produced Bell 206 and 206Bs) during the mid-1970s. A small fraction of this fleet was still flying by 1990, attrition coming from service during the Iran-Iraq War, difficulties in acquiring replacement parts and lack of maintenance experience.
The Shabaviz 206-1 is a reverse-engineered Augusta-Bell AB-206. The Shabaviz 206-1 program is one of many conducted by the state helicopter manufacturer Panha and the state aircraft company HESA, aimed at developing self-sufficiency in industry, primarily military industry, as well as sustaining the existing Iranian fleet.
In October 2006 Bell-Textron filed civil suit in District Court in the District of Columbia for selling, among others, the Shabaviz 206-1 helicopter, which it claimed "[traded] on Bell's reputation."
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