Akhoundi: We Have Not Approached Sukhoi for Air Fleet Renewal

The state-run newspaper Iran reported on Tuesday, September 30, quoting the Minister of Roads and Urban Development, that no negotiations have taken place with the Russian company Sukhoi for equipping the air fleet, and most discussions have been with Airbus and Boeing. According to the report, Abbas Akhoundi stated regarding the possibility of the Russian Sukhoi aircraft entering Iran's air fleet that "such an aircraft has not yet received flight permission from the Civil Aviation Organization, and I do not confirm negotiations for purchasing Sukhoi." The Minister also referred to plans for equipping and renewing the air fleet and negotiations with foreign companies prior to the Vienna talks, adding that "we have had extensive negotiations with first-class aviation companies for infrastructure development and equipping navigation systems and have reached a preliminary agreement." He added that in this regard, "we are waiting for the implementation of the nuclear agreement to implement the memorandums of understanding." Akhoundi also emphasized that after the agreement is implemented, air transport will no longer be subject to sanctions. According to the Iranian Minister of Roads and Urban Development, in negotiations with Airbus and Boeing, Iran's plans and needs were presented "up to the year 2020." He also mentioned that "we have entered negotiations with other companies for short-range aircraft." Earlier in early September, the Russian news agency RIA Novosti reported, citing its sources, that a contract for the purchase of the Sukhoi Superjet-100 between Russia and Iran would be signed on the sidelines of the MAKS-2015 exhibition. Additionally, during the visit of Iran's Vice President for Science to Russia, there were speculations that the contract for purchasing this aircraft would likely be signed in the intergovernmental commission between Iran and Russia that will be held in September. The renewal of Iran's air fleet, which has been plagued by international sanctions for years, is one of the promises of the Iranian government that has been emphasized more than ever in recent months as the end of nuclear negotiations approaches. Previously, Mohammad Khodakarami, the head of Iran's Civil Aviation Organization, stated that this government organization intends to purchase 80 to 90 Boeing and Airbus aircraft annually in the "first phase of renewal" of the country's air fleet. Khodakarami added that in the text of the nuclear agreement between Iran and six world powers on July 14, "the prohibition on the sale, lease, transfer, engines, and aircraft parts has been explicitly lifted." The transfer of aircraft through the method of "lease with the option to purchase" was also mentioned. The newspaper Iran, in its issue on Tuesday, September 30, also quoted the Iranian Minister of Roads and Transportation as saying that three foreign investment projects for the renewal and improvement of Iran Air are underway. The Iranian Minister added that detailed negotiations have been conducted regarding the renewal of Iran Air's fleet so that this airline can grow as the mother of the air transport industry. Akhoundi also announced the preparation of a special proposal package for purchasing and transferring aircraft, stating that based on this proposal package, "a company will be established that will purchase aircraft on a lease or lease-to-own basis from foreign companies and provide new aircraft to domestic companies." He emphasized that in this way, domestic companies will not be involved in purchasing aircraft, and the aircraft will be provided to domestic companies through leasing and lease-to-own methods. Akhoundi's statements regarding the method of renewing airline fleets were made in response to the question posed by the newspaper Iran that "the very high cost of purchasing aircraft is beyond the capacity of domestic companies." In recent years, the activities of some airlines have been halted or limited due to lack of profitability and inability to equip their fleets. Previously, the CEO of the Airports Company stated in a television program on September 13 that "currently we have 10 bankrupt airlines that owe us money, and if an airline claims it cannot provide services and is not profitable, it should stop its services." These statements, however, were met with a response from the secretary of the Airline Companies Association, who reminded in an interview with ISNA that "airlines that currently have flight permits in the passenger sector from the Civil Aviation Organization, although economically under pressure, are not considered bankrupt at all." Maqsoud Asadi stated in this interview that "the discussion of bankrupt airlines pertains to the past. He added that "over the past years, 12 airlines in the country have shown no interest in continuing their activities for various reasons and have left Iran's air fleet, and the issue of bankrupt airlines is not related to the airlines that are currently active."