Economy, Domestic Economy
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Aircraft Leasing Prohibited

Aircraft Leasing ProhibitedAircraft Leasing Prohibited

Minister of Roads and Urban Development, Abbas Akhoundi, said on Saturday that leasing in the aviation industry is prohibited, warning that airlines operating with rented aircraft will not be authorized to conduct flights.

Aircraft lease is a process whereby airline companies lease airplane from other airlines or leasing companies. It helps the airlines to provide temporary increase in capacity and operate without the financial burden of purchasing aircraft.

Akhoundi added that “according to the new regulations, the import of airplanes over 15 years in age is banned,” Mehr news reported.

“The aviation industry is highly dependent on the international market and can be affected by its volatilities,” he said, referring to the sanctions imposed by the West on the industry over Iran’s nuclear program.

The embargo imposed on aircraft and spare parts exports to Iran has left Iranian airlines with one of the oldest fleets in the Middle East, undermining flight safety over the past 20 years.

“Iran’s aviation industry has been under sanctions since the victory of the Islamic Revolution in 1979,” Akhoundi said, adding that sanctions should not hamper productivity in the industry.

He added that the government backs privatization efforts in a bid to help overcome current shortcomings in the industry.

Meanwhile, Iran delivered more than one billion liters of jet fuel to Iranian and foreign airlines during the past 9 months, the Head Office for Fueling Airlines, affiliated to National Oil Products Distribution Company said Friday.”Out of one billion and 50 million liters of fuel delivered to local and foreign airlines during that period, 945 million liters was delivered to Iranian airlines and the remaining 105 million liters to foreign airlines,” said the office.

Financialtribune.com