Lifting of sanctions in Iran will provide boost for aircraft industry

With the International Atomic Energy Agency (IAEA) certifying Iran’s compliance with technical constraints on its nuclear program, sanctions, which have been in place and implemented after the Iran Revolution since 1979, with additions in 1995 and those implemented subsequent to the passing of the UN Security Council Resolution 1696 in 2006, are now set to be lifted. One major benefit to the country will be its ability to now access over US$100 billion in frozen foreign assets.
In addition, the country will now be able to generate substantial revenue from oil production to boost its coffers. With such financial resources at hand, the country has wasted little time in aiming to modernising its fleet of commercial aircraft. that No official agreement can be made until all legal complexities of the lifting of sanctions have been dealt with, but it is believed discussions have begun with Airbus for the supply of 114 aircraft.
Abbas Ahmad Akhoundi, Iran’s Minister of Transportation, is quoted as saying: “We have taken the first step in agreeing with Airbus to buy 114 planes.”
A spokesman for Airbus indicated that “Although Iran clearly has a need for new aircraft, we must conform strictly to the law and, until all measures concerning the embargo are lifted, no commercial discussions can take place.”
Both Iranian and Western industry officials have calculated that with a population of 80 million people, Iran will require 400 or more aircraft over the next ten years to replace an aging fleet that has witnessed several fatal crashes in more recent years. In financial terms, this could amount to a windfall in the region of US$20 billion in commercial deals, while leasing companies could also cash in on the likely prospect of long waiting times for the delivery of needed aircraft.
With the opening up of Iran the demand for international travel will also be on the increase, and as a consequence it is understood that British Airways are looking to recommence flights to the country’s capital, Teheran, in the near future. IAG Chief Executive, Willie Walsh, told a conference in Dublin that “We are very interested in flying to Tehran and we are hopeful that it will form part of BA’s network in the very near future,” adding, “We are actively looking at it as a destination.”