New planes won't solve Iran's aviation dilemma
Despite its great potential and the imminent influx of new aircraft, Iran's aviation sector is likely to remain anemic unless there is a genuine shift in the business approach.
As Iran Air has begun receiving its first brand-new, Western-made airplanes in decades, it seems that President Hassan Rouhani's efforts to lift sanctions have paid off. However, rejuvenating a long dilapidated industry is different from simply renewing a fleet.
During the past decades, nothing has symbolized the impact of sanctions on Iran as much as the state of its aviation industry. Once pioneering intercontinental flights and regional routes in the Middle East, Iran's commercial airlines have been stuck with old fleets as they suffer from lack of access to foreign investment and modern aircraft. Use of Russian commercial airliners such as Tupolevs and Ilyushins have filled the void. Indeed, accidents have been a consistent occurrence in Iran, leading to public dissatisfaction with Russian planes. From 2005 to 2015 alone, Iranian airlines experienced 16 incidents that resulted in 586 deaths. As such, there is little wonder why earlier this month many Iranians celebrated the arrival of the first brand-new Airbus aircraft, an A321-200, as the end of a tragic era.
When Iran and six world powers reached an agreement on the country's nuclear program in 2015, it was obvious that Iran's next step would be purchasing new aircraft. As Iranian diplomats were negotiating with their counterparts in Switzerland and Austria, Minister of Roads and Urban Development Abbas Akhoundi showed up at the 2015 Paris Air Show to conduct the first round of negotiations with Airbus. Akhoundi announced that Iran would need 400 planes to renovate its fleet. Following the January 2016 implementation of the Joint Comprehensive Plan of Action, national flag carrier Iran Air placed orders with Airbus and Avions de Transport Regional (ATR) for 118 Airbus jet airplanes and 40 ATR 72 turboprop regional airplanes. Later, Iran Air reached an agreement with Boeing to purchase another 100 passenger jets. By the fall of 2016, Iran had on paper placed orders for close to 300 airplanes while negotiations with Japan's Mitsubishi, Canada's Bombardier and Russia's Sukhoi continued for additional purchases.
As such, news dispatches covering Iran’s aviation scene have long contained an element of euphoria. Some have argued that Tehran could be the next Dubai in global air transit, promising that Iran will catch up with Turkey and the United Arab Emirates in this industry.
