Economy, Business And Markets

World Jet Industry Players Converge on Tehran

World Jet Industry Players Converge on Tehran World Jet Industry Players Converge on Tehran

More than 150 industrialists, experts and chiefs of aviation operators and suppliers from around the world, such as International Air Transport Association and International Civil Aviation Organization, converge on Tehran for the two-day Iran Aviation Summit 2016 opening on Sunday.

Following the announcement in Vienna on January 16 that nuclear-related sanctions against Iran have been lifted, the summit will be the first major international aviation summit to be held in Iran in almost 40 years, announced co-organizer, the Center for Asia-Pacific Aviation.

“Iran Aviation Summit 2016 has coincided with two major developments, namely the implementation of the Joint Comprehensive Plan of Action and deregulation of airfares in Iran, which will bring about numerous advantages for the domestic aviation industries,” IRNA quoted secretary of the summit as saying.

Ahmadreza Bayati added that more than 85 major aircraft manufacturers from 35 countries, including Airbus Group SE, Canada’s Bombardier, Brazil’s Embraer and French-Italian aircraft manufacturer ATR as well as top Europe-based aircraft leasing companies, are scheduled to attend the historic gathering.

"The Boeing Company will not attend the event due to visa problems," he said.

Established in 1990, the Center for Asia-Pacific Aviation provides independent aviation market intelligence, analyses and data services that support strategic decision-making at many of the world’s most recognized organizations.

Freed from years of sanctions, Iran is looking to replenish its aging air fleet. Iranian authorities say the country needs at least 400 passenger planes over the next decade, which makes it a hugely enticing market at a time when plane-makers are facing a slowdown after years of strong orders.

The opportunity has already sent the giants of the $130 billion-a-year jet industry scrambling for a piece of the action.

Earlier this month, Iran's Minister of Roads and Urban Development Abbas Akhoundi announced an agreement has been reached with the European consortium Airbus to buy 114 passenger planes for state carrier Iran Air. He said the first shipment of planes will arrive in Iran before March 20, 2016.

Following the West's announcement of the official end of its sanctions regime against Iran on Jan. 16, US President Barack Obama announced the lifting of a decade-long ban on sales of civilian aircraft to Iran the same day.

This means the largest American aircraft manufacturer Boeing is now free to enter the competition to tap Iran’s just-opened-up market of 50 airports in a country of 80 million people.