The 7th Biennial Kish Air Show opened on November 18 on the Persian Gulf Island. The 4-day exhibition is aimed at helping participants understand changes in the Iranian aviation industry, discover business opportunities and meet new partners as well as competitors. More than 100 local and foreign companies – namely from the UAE, China, Russia, Germany, Italy, Sweden, France, Ukraine and the Czech Republic – are taking part in the event.
As talks on forging a comprehensive nuclear deal between Iran and P5+1 are approaching a November 24 deadline, both Iranian and foreign aviation corporations are modifying their strategy for an era of no sanctions against the industry, after recently signed deals between Boeing and Iran Air.
Foreign investors and companies who are interested in this market can forge partnerships and seal deals in four major categories. First, there is an operational, economic requirement to re-fleet the Iranian airlines with more efficient aircraft, creating an unprecedented opportunity for noted aircraft manufacturers, such as Boeing and Airbus, to sell their products.
Second, the availability of competitive maintenance, repair and overhaul (MRO) choices for aircraft engines and components is a challenge to the airlines. To expand their business in this regard, MRO centers in Iran are eager to launch joint projects or firms with globally recognized MRO service providers.
Third, when sanctions are lifted, the airports face an increasing trend of cargo and passenger traffic and are forced to deliver value enhancement through operational and structural improvements. Some business plans have been approved for the development of airports such as Tehran Imam Khomeini International Airport (IKA) and authorities are looking for potential investors.
Finally, aviation finance is currently a challenging topic in Iran due to scarce liquidity and increased difficulty in accessing the securities market and banks’ resources. Thus, new investors entering this space are able to enjoy enticing returns which are secured by an underlying asset.
Despite the challenges, Iran’s aviation industry is an opportunity for domestic and foreign companies and investors to earn attractive profits. So, by attending the Kish Air Show, foreign companies can interact with leading airlines, MRO service providers and specialists in Iran and discover new investment opportunities. And the timing is right.