Delay in Delivery of Aircraft Purchased by Iran

If the delivery schedule for the new aircraft had gone as planned, Iran should have received nine Airbus planes last year, but this did not happen. Boeing was also supposed to deliver the first aircraft, a Boeing 777 model, to Iran Air in May 2018, but this seems unlikely to occur. Abbas Akhoundi, the Minister of Roads and Urban Development, stated in 2016 that 'nine Airbus 321 and 330 aircraft would be delivered in 2017. We used a simple lease-to-own method for purchasing these aircraft, and Iran Air would purchase the aircraft at an initial price.' According to this planning, two Airbus 330 planes were supposed to be delivered to Iran Air; prior to this statement, one Airbus 321 had also been delivered to Iran Air. However, after the delivery of two Airbus 330s to Iran Air, the delivery of Airbus planes to Iran was halted. After the JCPOA (Joint Comprehensive Plan of Action), nine new aircraft were added to Iran's aviation fleet, three of which are Airbus and six are French-Italian ATR aircraft. Iran Air announced after signing a contract with Boeing that it would purchase 50 Boeing 737 Max aircraft, with deliveries starting from 2021. Additionally, Iran Air purchased 30 Boeing 777 aircraft, 15 of which are from the 300 family, with the first one expected to be delivered from April 2018. In 2018, six and in 2019 another six Boeing 777 aircraft were to be delivered to Iran. In 2020, three more of these aircraft were to be delivered. Iran Air also purchased 15 of the latest 777X model, which will be delivered starting in 2021. According to the planning, Iran should receive its first Boeing aircraft in May, but this delivery is currently shrouded in uncertainty. The issue of aircraft purchases for Iranian airlines has progressed to the point where some news agencies have reported the resignation of the Deputy Minister of Roads and Urban Development. Asghar Fakhrieh Kashan was appointed by Abbas Akhoundi as an advisor and later as Deputy Minister for International Affairs. He was the primary figure in aircraft purchase contracts in Iran. Tasnim News Agency reported that Asghar Fakhrieh Kashan resigned due to 'failure' in aircraft purchases. So far, the final agreement for aircraft purchases between Iranian airlines such as Iran Air, Aseman, Iran Airtour, Zagros, and Qeshm Air with Airbus and Boeing has been confirmed by these aviation giants. Iran Air and other Iranian airlines must secure financing as soon as possible to finalize the delivery of some of their ordered aircraft within the next two years. Otherwise, they may not be able to purchase aircraft from Boeing or Airbus due to changes in U.S. laws. Reports indicate that the license issued by OFAC (Office of Foreign Assets Control of the U.S. Department of the Treasury) for purchasing aircraft is valid until 2020. Following these issues, Gholamreza Salami, an advisor to the Minister of Roads and Urban Development, told Shargh newspaper that 'pressures on Iran to join the Cape Town Convention on one hand and the lack of cooperation from global banks to guarantee foreign financing are the two current locks on aircraft purchase negotiations.' According to the advisor, 'the Cape Town Convention deals with the collateralization of aircraft. We are not yet a member of this convention, and the negotiating party is pressuring us to join, which is also time-consuming.' Other issues raised by the advisor include 'problems related to major banks that need to mediate, but they are also refraining from intervening due to the U.S. sanctions environment.' The Iranian Ministry of Roads has also stated that due to the potential return of sanctions, 'the issue of financing from Airbus and Boeing' is also facing challenges.