Opinion: Opportunity window closes for Iranian aviation industry
This article was written by James Kim, Group Managing Director at AvCon Worldwide (Holdings). The opinion of the authors does not necessarily correspond with that of the editorial team. Want your opinion to be featured on AeroTime? Send us a line at email@example.com.
A short while ago US President Donald Trump announced that the US is leaving Iran nuclear deal and re-imposing sanctions against Iran.
I wrote a couple of articles covering what Iranian airlines, aviation industry have to do at that time. There was a way to purchase aircraft, engines, and parts legally by applying for an OFAC licence. However, Iranians didn't like to follow such route or ignored it.
Many Iranians tried to acquire aircraft, engines, and parts without OFAC licences. Some non-Iranian firms got into trouble and were sanctioned by the US government for breaking OFAC rules and dealing with Iranians illegally - notably Khors Aircompany and Dart Airlines were listed on SDN list in September 2017.
I received a few requests from Iranian and those claiming to be representatives of Iranian entities. None of them were interested in going through OFAC licensing process, yet still looking for ways to acquire what they want by breaking OFAC regulations.
Today the window of opportunity is gone and race for illegal acquisition of aviation assets will intensify. There are going to be willing proxies from developing countries who are willing to act as frontmen for acquisitions on behalf of Iranians. Also, there will be no further aircraft deliveries by Airbus and ATR, so there will be race for parts acquisition too.
It is a sad day for Iranian aviation, but the impact of today's events will cause a far wider effect. Aviation industry will consider dealing with Iran as a more risky business and avoid dealing with Iranians.
There will be parties in developing countries and third world countries who are willing to be proxies of Iranian interests for monetary gain by working as middlemen for acquisition of aviation assets. It is important to check the end-user even if potential customers are not from Iran as they can be Iranian proxies and businesses, persons who made the deals with Iranians or Iranian proxies, which may result in facing US sanctions and penalties.
Iranians should have acquired aviation assets when they could, by obtaining OFAC licences. Now the window of opportunity is shut and closed.
Note: the text has been edited by AeroTime team. Read the original version here.
Emirates warned over breach of no-fly zone in Yangon
Myanmar’s Department of Civil Aviation (DCA) has warned Emirates that they may take action against the a...
Allegiant receives first US-assembled A320 for all-Airbus fleet
Allegiant Air on May 23, 2018, took delivery of its first U.S.-produced A320 aircraft from the Airbus manufacturing faci...
Rwanda receives ICAO’s aviation safety compliance certificate
The International Civil Aviation Organization (ICAO), on May 22, 2018, awarded Rwanda with a certificate that recognizes...
Argentina, United Kingdom to open five routes to the Falklands
Five routes between Argentina and the contested Falklands Islands (Islas Malvinas in Spanish) are currently being studie...
Two emergency landings in a row involving Onur Air
Saudi Arabian Airlines confirmed to AeroTime the aircraft that crash landed on May 21, 2018, was wet-leased from the low...
What happens when good pilot works for wrong airline?
When it comes to finding the right pilot to fly commercial aircraft, experience in the cockpit is not enough. While avia...
Saudia flight crash lands after hydraulic malfunction
An A330-200 of Saudi Arabian Airlines carried out an emergency landing in King Abdulaziz International Airport (JED) in...
Air Belgium ready to take off after Russian approval
Air Belgium announced that it would start its operations on June 3, 2018. Its first flight will be from Brussels South C...