The US sanctions campaign against Iran’s aviation sector is set to inflict a ‘material impact’ on the country’s airlines, analysts said.
Aviation analysts believe that Washington’s move to also restrict overflight authorisations was a heavier blow, since Iran had earned more than $300 million a year from international airlines paying to cross its airspace – revenue he said had helped fund the industry’s infrastructure.
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In addition, airfares in Iran have spiked due to the restrictions imposed by the US and other countries on the Iranian carriers.
Saj Ahmad, chief analyst at the London-based StrategicAero Research, said it’s fair to say that the US decision to “ground” Iranian airline is beyond sabre-rattling and there will be material impact.
Iranian carriers are largely confined to routes serving Iraq, India, Pakistan, China, and Russia.
US Treasury Secretary Scott Bessent warned on Monday that Iranian carriers would struggle to operate abroad from September 23. “If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system,” he told CNBC. The warning follows Treasury action on September 8, which placed all of Iran’s 27 airlines under sanctions.
On Thursday, the General Civil Aviation Authority (GCAA) of UAE announced the suspension of flights operated by Iranian airlines to and from the UAE until further notice.
The GCAA confirmed that the decision was made in light of the US ban imposed on Iranian airlines from using airports in various countries around the world.
The GCAA also stated that it will continue to keep the relevant authorities and the public informed of any developments as they arise, pending the resumption of normal air traffic between the two countries.
In addition, Iraq had reportedly ordered its Civil Aviation Authority to suspend Iranian flights to Baghdad, with officials weighing whether to divert them to Najaf instead.
Azerbaijan and Georgia have imposed blanket bans, while Turkey’s restriction on Mahan Air appears narrower, with other Iranian carriers still flying to Istanbul.
Source: Khaleej Times