Iran to seek financial solutions to aircraft deals

A meeting kicked off at Imam Khomeini International Airport in Iran's capital Tehran on Sunday to seek financial solutions to the country's international aircraft deals, state Press TV reported.

In the two-day Iran Aviation Finance Summit, business and financial representatives of 150 aviation companies, banks, airport operators, investors and infrastructure developers will explore financial solutions for purchasing passenger planes and developing aviation infrastructure.

According to Press TV, Iran has placed orders with Airbus and Boeing to buy 200 passenger planes worth some 50 billion U.S. dollars, but the country has difficulties in financing because major international banks are reluctant to process the transactions for fear of possible penalties from the United States.

"All the necessary institutions for global competition in the aviation sector are taking shape in the country," and Iran is eager to expand its aviation sector, Iranian Minister of Roads and Urban Development Abbas Akhoundi told the meeting.

Iran needs to purchase new planes as the average age of its aviation fleet stands at 22 years, Mohammad Khodakarami, deputy director of Iran's Civil Aviation Organization, explained.

The Islamic republic estimates it needs about 400 passenger planes to modernize its aging fleet in the next decade.

Experts say the U.S.-imposed sanctions against Iran over the past years, which prevented its allies from selling aircrafts or aircraft parts to the country, have undermined safety standards within Iran's civil and military aviation fleet and increased the possibility of air disasters.

In July 2015, Iran and world powers reached a deal to settle its controversial nuclear program.

Under the deal, which came into force in January, Iran has to scrap the major part of its nuclear program, in return for the removal of international sanctions. Endit