Berliner Boersenzeitung - Iran's aviation woes compounded by latest EU sanctions

It was within hours of the European Union announcing measures last week against prominent Iranian officials and entities, including airlines, accused of involvement in the transfer of missiles and drones for Russia to use in its war against Ukraine.

Tehran has consistently said such accusations were baseless, but with Western governments unconvinced, the latest sanctions went ahead, dealing a blow to Iran's already embattled airline industry.

Unable to make it to her photoshoot in Paris as Iran Air had grounded all Europe-bound flights over the sanctions, Tannaz was left grappling with the effect on her business, uncertain how she may keep working abroad under the new restrictions.

"Considering the current situation and higher flight price options, I think I will lose many customers," said the 37-year-old who gave her first name only, fearing repercussions.

With no other Iranian airline serving European destinations, any alternative to the cancelled Iran Air route would likely cost her much more and include a layover, increasing travel time.

Many Western and other international airlines had already suspended their Iran services, citing heightened tensions and the risk of regional conflict since the Gaza war broke out more than a year ago.

- Host of challenges -

Despite having largely avoided being drawn into the conflict, Iran backs Palestinian group Hamas, whose October 7, 2023 attack on Israel sparked the war, and has launched two direct attacks on Israel.

The latest missile attack earlier this month, in response to the killing of Tehran-aligned militant leaders and a Revolutionary Guards general, prompted vows of retaliation from Israel, again heightening fears of a broader conflagration that could disrupt air traffic.

Iran Air, far cheaper than its foreign competition, was "the only airline that flew to Europe in our country", said Maghsoud Asadi Samani of the national airline association.

"With the new European Union sanctions against Iran Air, no Iranian aircraft will fly to Europe", news agency ILNA quoted Samani as saying.

Earlier Western sanctions on Iran, including those reimposed after the United States withdrew in 2018 from a landmark nuclear deal, have taken a toll, too.

They contributed to soaring inflation, slashing Iranians' purchasing power, but also heavily restricted the acquisition of aircraft and spare parts, and limited access to maintenance services.

"A significant number of planes in Iran have accordingly been grounded" for years, said economist Danial Rahmat.

Ageing aircraft fleets have worsened poor safety standards, part of a host of challenges Iran's aviation sector has long grappled with.

Economist Said Leylaz said that while sanctions have had a serious impact, airlines' woes were rooted in mismanagement and corruption.

- Going 'where we're not sanctioned' -

But Iranians have only a few alternatives.

Rahmat said that now, they may have to primarily rely on flights via neighbouring countries to reach Europe and other parts of the world.

Not only would it "impose higher costs and longer travel hours on Iranian passengers, but it would also provide an opportunity for airlines from these countries to acquire a larger market share" at the expense of Iranian firms, said Rahmat.

Iran Air still flies to several regional destinations as well as some in Asia. Another company, Mahan Air, goes to Moscow and Beijing several times a week.

Shortly after the latest EU sanctions were announced on October 14, Iran Air set up a daily route to Istanbul "to facilitate travel to Europe and reduce travellers' worries", news agency ISNA reported.

Leylaz said that the sanctions would likely boost Iran's ties with non-Western allies like China.

The demand for flights to east Asia "and outside the European Union... to places where we are not sanctioned is very high", he added.

President Masoud Pezeshkian has made easing Iran's economic isolation a key objective, but indirect talks with the United States that could have helped have been suspended over the regional conflict, according to Foreign Minister Abbas Araghchi.

For Tannaz, the photographer, the ability to go abroad is not just a work issue but also a reflection of the state of the country.

"I just wish we could live a normal life," she said.

(A.Lehmann--BBZ)