With sanctions lifted on Iran, its long forgotten aviation infrastructure is set to be revitalized. At the recent CAPA Iran Aviation Summit, Abbas Akhoundi, Iran's transport minister, invited foreign investors to come and rebuild the country's airports. So what does the future hold?
Iran has 67 commercial airports, most of which serve domestic routes across the country. However, a number also offer international links around the Middle East and further afield.
The country's two primary airports are in the capital, Tehran. Mehrabad is the older facility, acting as a domestic and regional hub, and a base for government and military flying. The newer Imam Khomeini International (IKA) airport was opened in 2004 and acts as the country's main international gateway, and it is capable of handling all large aircraft.
As a result of Iran meeting its nuclear commitments, U.S.-led sanctions on the country first imposed in 1979 (and later expanded in 1995) have now been lifted, allowing the country greater freedom over trade and imports. In particular, sanctions imposed over aviation activities had left airports and airlines struggling to maintain decades-old aircraft and infrastructure.
Those are now gone. Within weeks of the news, the country's main air carrier, Iran Air, announced an order for 118 Airbus aircraft and 40 ATR regional turboprops. It also implied it may order Boeing, Bombardier and Embraer aircraft in the near future.
While this targets a replacement of its current fleet of around 40 aircraft, it also implies the airline anticipates significant growth, with new long-haul services to North America and a large regional network in the Middle East planned. Other Iranian airlines have also indicated their intentions to grow with new aircraft, and we may see many new entrants in the market trying to capitalize on these new freedoms.
As a result, the country's airport infrastructure will need a total overhaul to both bring it in line with international standards, and to cope with growth and greater passenger numbers.
The state-owned Iran Airports Holding Company, which operates all airports and air traffic control towers around Iran, announced its intention to undertake development across the country over the next 15 years. It will build two new airports at Ahvaz and Bushehr, and will also reactivate a number of dormant airports. Approximately $3 billion in investment opportunities are on offer in 2016 alone.
Naturally, Tehran's IKA airport is first in line for the government and many investment partners as it is the public face of the country. IKA also shows the most potential, being the main gateway and benefiting from a convenient location between East and West, with the hope of creating a Middle Eastern hub to rival Dubai or Istanbul Ataturk over time. Without a single change being made, January already saw announcements of new or reinstated services by Air France, British Airways and Lufthansa to IKA.
A master plan was commissioned in 2013 for future development of IKA by ADPI, a subsidiary of Aeroports de Paris Group, which would see the construction of a new terminal and associated infrastructure. This will no doubt be revisited imminently.
An image of a redesigned IKA airport from ADPI's master plan in 2013.
The dust needs to settle before an accurate assessment can be made over the future of aviation in Iran. This is just one sector that is vying for attention from the many investors now seeking to put money into the country.
The time factor is also important to remember. The process of seeing all of the plans come to fruition will undoubtedly be a slow burn with many revisions.
