by EOS Intelligence EOS Intelligence No Comments

Blockchain Likely to Make a Safe Landing in Aviation Sector


Blockchain technology has captured the interest of several industries and aviation is no exception. Its decentralized, secure, and immutable nature makes blockchain technology ideal for many operational aspects and verticals within the aviation industry. In fact, most of the blockchain-based solutions in the aviation sector extend beyond basic financial transactions and range across security and identity management, ticketing, maintenance, baggage management, and loyalty programs. Various stakeholders in the aviation industry, including airlines, airports, aircraft manufacturers and maintenance providers, and airspace technology providers, etc., are partnering together to explore and develop blockchain-based capabilities across the industry’s value chain.

Blockchain technology is fast emerging as the revolutionary technology in the aviation industry with most airline and airport CIOs investing huge resources and effort in exploring this space. As per Air Transport IT Insights 2018 report by SITA, one of the world’s leading air transport communications and information technology company, about 60% airlines have invested in blockchain-based pilot projects or research programs for implementation by 2021. This shows an increase from 2017, when only 42% airlines invested in blockchain-based research programs. Moreover, airports are also exploring this technology, with 34% airports planning blockchain-based R&D projects by 2021.

Owing to its decentralized, scalable, transparent, and secure nature, blockchain technology’s capabilities align well with the needs of the aviation sector, especially in the fields of ticketing, maintenance, luggage tracking, loyalty programs, and identity management.

Blockchain to streamline security and identity management

Passenger identity management is one of the most sought-after uses of blockchain in aviation. As per the SITA study, about 40% airlines and 36% airports claim passenger identity management to be one of the most prominent areas of application and benefit of blockchain technology.

Blockchain technology has the ability to streamline the identity management of passengers through the combined use of blockchain, biometrics, and mobile (or wearable devices). Currently, a passenger needs to pass several checkpoints where different parties (airport staff, airlines, control authorities, etc.) verify their physical IDs. This process is cumbersome, time consuming, and also vulnerable to human errors. Moreover, it results in a great amount of duplication of data as each stakeholder stores and verifies passenger information at their own level.

Blockchain, owing to its immutable, decentralized, and secure nature, helps solve these issues by validating identities using biometrics. Blockchain with security wrappers ensures that the information stored in the system is protected and helps share it with all the stakeholders through the use of authorized access protocols. Thus, blockchain and biometric-based ID management help eliminate the need for paper documentation (such as passport and visa) across the entire journey. This will facilitate a smoother and quicker travel experience for the passenger, as compared with the current verification and multiple checkpoints. Moreover, it will reduce security lapses as the need for paper documents (that can be forged) and human intervention is low.

Blockchain start-up Sho Card, which provides digital identification cards through blockchain, has partnered with SITA to develop a digital identity card as a proof of concept, wherein the traveler obtains a single travel token for his journey.

Under this concept, the traveler undergoes an initial check at the travel counter, where he is positively identified using biometrics and issued a travel token. A photo of the traveler is also taken for verification. This information (biometric ID information, travel token, photo) is stored on the travelers mobile or wearable device and replaces the requirement of any physical/paper identification. When the traveler approaches any gate or checkpoint, he presents the travel token via a QR code on the SITA traveler app. The agent at the checkpoint scans the QR code and validates the travel token and the individual matches to that in the photo. The traveler is allowed to pass if the information matches. This significantly reduces costs and time taken at several checkpoints for document validation. Moreover it reduces the human liability around documents check.

Other blockchain players, such as UK-based ObjectTech and VChain Technology, have also entered into agreements with Dubai’s Immigration and Visa Department and International Airlines Group (AIG), respectively, to provide blockchain-based solutions to streamline passenger data management for the aviation sector.

Blockchain and biometric-based ID management help eliminate the need for paper documentation (such as passport and visa) across the entire journey. This will facilitate a smoother and quicker travel experience for the passenger, as compared with the current verification and multiple checkpoints.

Smart contracts to ease out ticketing

Airlines currently sell paper-based or electronic tickets through their centralized ticketing system. For each booking, there are multiple touchpoints, which include airlines, travel agencies (online and offline), banks and card providers, and government agencies. Upon the sale of a ticket, each party stores passenger data at their individual level, which makes the process complex and vulnerable to errors. In addition, ticketing information being currently stored in a centralized database by airlines and airports makes it vulnerable to hacks and glitches, which in turn can result in reputation and revenue loss for the airlines or airport. This was seen in case of Southwest Airlines in July 2016, when the centralized ticketing database failed, resulting in the cancellation of about 2,000 flights and a revenue loss of US$82 million.

The use of blockchain-based smart contracts helps eliminate the need for paper tickets and e-tickets can be tokenized. Tokenized tickets can have their own set of embedded business logic and terms and conditions associated with how they are sold and used including pricing and timings for the flights. Moreover, further stipulations can be added to the ticket such as the class of the ticket, lounge access, etc. The decentralized nature of blockchain insulates it from hacking and system failures and also mitigates data sharing errors. Furthermore, it allows for the sale of tickets in real-time from different partners across the globe. It also improves customer experience and cost effectiveness of service by automating time consuming tasks, streamlining payment process, and reducing settlement times.

The use of blockchain-based smart contracts helps eliminate the need for paper tickets and e-tickets can be tokenized. Tokenized tickets can have their own set of business logic and terms and conditions associated with how they are sold and used including pricing and timings for the flights.

In July 2018, Russia’s second largest airline, S7 Airlines partnered with Russian commercial Bank, Alfa Bank, to build and sell its airline tickets over an ethereum-based private blockchain platform. The use of blockchain enabled the airlines to securely connect its online booking system with the bank’s payment processing systems, thereby speeding the payment processing time (from about two weeks to less than a minute) and reducing manual paperwork. In July 2019, the airline’s blockchain-based ticketing platform witnessed sales of US$1 million, indicating the success of the venture.

Blockchain to enable luggage tracking

One of the areas where airlines are constantly working on improving customer service and reducing costs is cargo and passenger baggage management. A passenger’s baggage passes through several automated and manual processes before being handed back to them and data about the cargo/luggage’s journey is usually stored in a non-standardized form on an individual level by multiple players that handle the cargo/luggage, including airlines personnel, transportation companies, airports, and local authorities.

This process results in passenger luggage being often lost or misdirected, a fact that impacts the airlines both in terms of reputation and cost. As per SITA’s Baggage Report 2018, this translated into additional costs of about US$2.3 billion for airlines in 2017.

Blockchain, which functions as an online record-keeping system maintained on a peer-to-peer network rather than a central agency or authority, can help airlines tackle the issues of lost luggage. Using blockchain, customers (and airlines) can track the luggage throughout its transfer process, which provides full transparency to the process. Thus if a bag is misplaced, the airlines can track back the entire journey of the lost luggage to identify the point where it went missing and why.

Blockchain Likely to Make a Safe Landing in Aviation Sector by EOS Intelligence

In November 2017, Air New Zealand partnered with Swiss-based start-up Winding Tree (which is a blockchain-based distribution platform for the travel industry), to explore applications based on blockchain technology that could help the carrier improve the efficiency and security of booking and baggage tracking services. The potential applications that Air New Zealand is looking to explore include cargo and baggage tracking, retail distribution, and loyalty program opportunities.

Another use of blockchain in baggage management is in determining lost baggage compensation. Through the use of smart contracts, airlines could automate insurance claims for lost baggage and instantaneously compensate customers. Rega, a blockchain insurance platform, has been deploying blockchain to create a “crowd-insurance” platform in which the risk of lost luggage is shared across the community. This works primarily as a peer-to-peer insurance that uses smart contracts and smart tokens to insure baggage for a group of passengers without the need for any insurance companies, agents, or intermediaries. Through this method, it has managed to reduce lost baggage premium to about US$12 annually for a coverage of up to US$5,000.

Blockchain to better manage maintenance history and spare parts sourcing

Flight maintenance is one of the largest cost-heads for an airline. As per IATA, in 2017, airlines globally spent US$76 billion on MRO (maintenance, repair, and overhaul), representing about 11% of total operational costs.

Currently, the MRO process is extremely complex, with the value chain encompassing multiple players such as manufacturers, component traders, airlines, service providers, and regulatory authorities. Moreover, each of these bodies store information in separate databases or physical ledgers. This makes obtaining information about components and maintenance extremely challenging and time consuming. Moreover, it can lead to data discrepancy (as it is stored at individual levels by the various parties), which in turn questions the reliability of this data and the safety of the component. In these cases, the worthiness of the component is established through an expensive and time consuming investigation, testing, and recertification process.

Blockchain’s decentralized, immutable, and transparent nature, makes it ideal for managing MRO records for airlines. Blockchain digitally logs and stores data regarding aircraft spare parts and maintenance, from the time the part is manufactured, to when it is installed, to every time maintenance or repair occurs. This decentralized, transparent, and real-time storage of data ensures that the information is available to all authorized parties (from airlines to MRO service providers) in a prompt and accurate manner, thereby saving on time and costs while achieving better safety and maintenance standards.

Blockchain’s decentralized, immutable, and transparent nature, makes it ideal for managing MRO records for airlines. 

In addition, the use of blockchain enables airlines to engage in more predictive maintenance, by enabling technicians to review the complete configuration and history of the various components in the aircraft on a blockchain-based ledger. This helps them tackle issues in a preventive manner rather than taking action after a problem has occurred. Similarly, MRO providers can also use blockchain to offer predictive maintenance services to airlines, saving money for both themselves and the airlines.

Blockchain also helps in sourcing spare parts and removing middle men in the sourcing process. Currently, aircraft components are sourced from vendors or traders in a marketplace, who then further scout for the component with manufacturers or sometimes other traders/resellers. This process is expensive (due to multiple mark-ups) and time consuming and most of all, lacks transparency. To tackle this, various manufacturers, airlines, and MROs can create a blockchain-powered aerospace marketplace, where the buyers can share the serial number of the product needed, which in turn can be matched to the real-time ownership and location of the seller currently holding the product. This would eliminate the need for middle men in the industry and also save time and reduce costs especially in case of scarce parts.

In October 2017, Air France-KLM announced its plans to evaluate and develop a blockchain-based system to manage replacement parts on in-service airplanes and improve aircraft maintenance procedures and record keeping. Similarly, in August 2018, Russian airlines, S7, in association with Russian energy player, Gazprom Neft, announced the successful development and implementation of a blockchain-based system to refuel aircraft using smart contracts. The smart contracts will remove the need for pre-payment, bank guarantees, and will further insulate the parties from any unforeseen financial risks involved in the refueling process. This is expected to help reduce cost and also save time both for the airlines as well as their energy partner.

Blockchain to add value to airlines loyalty programs

Flyer loyalty programs, better known as frequent flyer miles, are an integral part of an airline’s customer engagement program. All airlines run a loyalty program, whether individually or as an alliance. However, in traditional loyalty programs travelers need to wait to accrue a certain amount of points to utilize them, with limitations on where and when they can use them. Loyalty programs for alliances have an even more complex structure when compared with stand-alone loyalty programs. This results in limited incentive for travelers to remain loyal to a certain airline(s), thereby defeating the purpose of frequent flyer programs.

Blockchain has the ability to streamline the frequent flyer programs, especially for alliances. By tokenizing loyalty points on the blockchain, travelers can obtain instant value for the points by redeeming them in real-time and across a great number of partnering merchants. Thus with points being accepted as a form of “currency” across a pool of merchants, travelers can use these points in a faster and more efficient manner, thereby remaining motivated to maintain loyalty with a particular airline(s).

In July 2018, Singapore Airlines was the first airline globally to launch a blockchain-based loyalty program for frequent flyers. Under this program, Singapore Airline members can convert their miles into units of payments which are stored in a digital wallet, called KrisPay. This digital wallet was developed by Singapore Airlines in partnership with KPMG and Microsoft. The airline has partnered with 18 merchants across Singapore (including eateries, gas stations, beauty parlors, etc.) where customers can use KrisPay units.

Blockchain initiatives

Considering the various applications of blockchain across the aviation sector, a great number of airlines and airspace technology providers are investing heavily to explore this space and develop blockchain-based solutions for various verticals.

In July 2018, Lufthansa airlines partnered with SAP to launch a global Aviation Blockchain Challenge in order to support blockchain R&D in the sector. Through this venture, the two companies are seeking ideas from entrepreneurs and blockchain start-ups with regards to enhancing passenger experience, improving airline operations, processes, and maintenance, and streamlining the aviation supply chain.

Similarly in July 2018, SITA, which is the air transport industry’s largest technology provider and is jointly owned by a large number of airlines, launched the Aviation Blockchain Sandbox project. Through the Sandbox project, the technology provider aims to achieve intra-industry collaboration to understand and explore the applications of blockchain in the aviation space and undertake cross-industry initiatives. This platform gives access to smart contracts known as FlightChain, which will help improve flight status data problem for airlines and airports by storing all flight information on the blockchain to provide consistent data across the network.

EOS Perspective

Blockchain technology has taken several industries by storm, and shows great potential in several others (read our previous publications: Blockchain Technology – Next Frontier in Healthcare?, Blockchain Paving Its Way into Retail Industry, and Blockchain: A Potential Disruptor in Car Rental and Leasing Industry to find out more). Aviation seems to be no exception. Although application of blockchain in the aviation industry still seems to be largely at the exploration stage (with most companies running proof of concepts and investing in testing phases), it definitely holds the potential to transform the way air travel is currently done.

Explore our other Perspectives on blockchain

That being said, blockchain cannot be seen as a universal remedy for all the issues faced by the aviation sector. To ensure that blockchain is used in the most efficient and cost effective manner, it is critical for players to have a solution-oriented approach when exploring blockchain-based applications, i.e. starting with a specific problem and working towards developing solutions, rather than making blockchain a solution and looking for problems to solve with it. With blockchain becoming the buzz word across the board, it is very common for companies to get carried away with the technology trying to fit in places, where its needs or costs are not justified. Considering that the technology is relatively new and has limited scalability at the moment, a lot of blockchain-solutions that may work well in theory may not be practical in today’s day and may need to wait for the blockchain technology to evolve further.

Moreover, for blockchain to be successfully applied across the industry, it is very important for the stakeholders to collaborate to develop blockchain solutions with regards to sharing data, technology, and costs related to R&D. This is also somewhat of a challenge as adoption of blockchain requires transparency and most companies are wary of sharing their data and information with external players.

Despite these challenges, the adoption of blockchain technology by the aviation sector seems more like a matter of “when”, rather than “if”. Most players in the aviation sector have been operating through traditional business practices for several decades now and may take time to embrace blockchain in mainstream operations. However, several players such as Lufthansa and Air France-KLM have started leading the way. With promises of cost savings and better services, it is to be seen if blockchain can enjoy a smooth landing in the aviation sector.

by EOS Intelligence EOS Intelligence No Comments

New Wings to Fly – Post-Sanction Scenario of Iran’s Aviation Industry


The Nuclear Deal between Iran and the six super powers is seen as a boon for the aging Iran aviation industry. Iran now plans to add 300 new aircraft in the next five years and 500 in the next 10 years by growing the national fleet as well as additional airports and facilities to the country’s existing infrastructure. Although many view this as a tremendous opportunity, there are many hurdles along the way – how does the country plan to tackle them?

On July 14, 2015, Iran and the six super powers (the USA, UK, France, Russia, China, and Germany — collectively known as the P5+1) finalized a Joint Comprehensive Plan of Action (JCPOA). This agreement is meant to ensure that Iran’s nuclear program can only be used for peaceful purposes in return for lifting the sanctions from P5+1 countries. On January 16, 2016, International Atomic Energy Agency (IAEA) announced that Iran met the requirements of the JCPOA and the sanctions were immediately lifted. One of the reliefs for Iran was the ability to conduct business with the EU and US companies across a range of sectors, including aviation-related industries.

The lifting of the sanctions was a relief for the aviation industry of Iran, as the entire in-service fleet of 225 airplanes is in a dire need for repairs and maintenance. Due to import sanctions, much needed machinery and parts have not been available for the airlines to repair and maintain their fleet, while the access to new airplanes was very limited. The average age of Iran’s fleet is 25 years, which is among the oldest in the world. This is also one of the reasons why Iran’s civil aviation has had one of the world’s worst safety records – more than 500 people dead in the past few years in air crashes of various Iranian airlines.


The lack of access to new machinery and aircraft has affected the growth of the domestic airlines – this includes the flagship carrier, Iran Airways, as well as other top airlines such as Aseman Airlines and Mahan Air. These three airlines hold the maximum in-service fleet and they are likely to also be the first to benefit from any deals made in the aviation sector in the country. And the deals are expected to start pouring in soon. The lifting of sanctions has enabled Iran to seek the possibility of doing businesses with companies such as General Electric (GE), a US-based equipment manufacturer, which has shown interest in investing in Iran to provide commercial aircraft engines, parts, and services, which is likely to be a boon for the local airlines in working towards improving their safety record over time.

Iran has already initiated talks with two leading aerospace equipment manufacturers, US-based Boeing and France-based Airbus, to buy equal amount of airplanes from both companies. As of January 2016, a deal was signed between Airbus and Iran to deliver (although the delivery timeline is still unclear) 118 jetliners worth US$27 billion. Boeing is working out the details with the US Treasury and a contract will go under negotiation once these details are clear. Both companies are motivated to convert the talks into a deal – even though both companies are giants, selling to most airlines around the world, the number of airplanes ordered by a Iran is still going to be a large contract for them.

Iran plans to re-vamp the entire aviation industry, including the purchase of new airplanes and construction of new airports along with refurbishing the existing infrastructure. The new planes are planned to slowly replace the older ones with the ambitious objective for the airlines to have brand new in-service fleet, which would reduce the repairs and maintenance costs over time. Apart from investment in airplanes, Iran also plans to develop five new airports with a total investment of US$8 billion. Iran’s Civil Aviation Organization (CAO) has already outlined two airport projects to be developed with an investment of US$1 billion expected to be completed by 2022, while the rest of the projects are yet to be announced.

The idea is to develop these airports as international corridor and transit hubs by reviving the historical trade route advantage, which Iran had through the Silk Route in ancient times. Iran, back then known as Persia, connected the Western countries to the Eastern ones – it was one of the transit hubs for trade. In current attempts to revive that route, Iran considers two airports, Dubai, UAE and Doha, Qatar, as competitors, due to these airports’ advantage of the same central geographical location connecting the West and the East. Dubai and Qatar have already leveraged their location and facilities by offering transit hubs to many international carriers, which brought good volumes of international traffic into these two countries. This has also led to the development of hospitality and tourism industry in the areas along with business and job opportunities to the local and expat population of UAE and Qatar. These countries have also worked on establishing their flagship airlines – Emirates and Qatar Airways, and both of these airlines are among the top airlines in the world now.

According to Iran officials, both these airports (Dubai and Doha) and their flagship airlines (Emirates and Qatar Airways, respectively) are direct competitors to Iran’s airports and its key airline – Iran Air. Iran can also learn from these two airports’ history in its quest to restore growth in aviation and several associated industries. The development of Dubai airport has been attributed as one of the major turning points to the development of the city, Dubai – the airport was earlier used for transit flights, repairs and/or refueling of the airplanes, gradually increasing the international flights and footfall in the city. This spurred interest of international players in hospitality industry to expand their existing infrastructure in the city, which in turn lead to the development of hospitality and tourism industry in UAE, which was a relevant step UAE took in diversifying its oil-based economy. Currently, Dubai handles passenger traffic of more than 75 million on a yearly basis. Recently it was announced that Dubai will be expanding its airport to accommodate the increasing traffic on its terminals.

Iran would like to draw a similar story for itself and follow Dubai’s footsteps by putting its flagship airline in the global picture and using its airports as transit hubs. The major challenge in Iran’s case is that it has missed out on this opportunity by at least a decade, if not more. Dubai and Doha already have the infrastructure, policies and rules in place to accommodate growing traffic, along with businesses looking to invest or expand in the city or the country. Iran still needs to develop or update the basic infrastructure it has so it can start to match its competitors. For this development, it needs heavy investment and planning to execute the vision it has for the aviation industry and developing other industries such as tourism and hospitality.

The Realistic View

Iran used its natural resources to attain economic development, a similar scenario as in other oil-based countries such as Saudi Arabia. Iran and Saudi Arabia are two countries, which can leverage on the onshore oil reserves available at a low cost. According to the Organization of Petroleum Exporting Countries (OPEC) data, Saudi Arabia accounted for 22.1% (266.56 billion barrels) while Iran accounted for 13.1% (157.53 billion barrels) of world’s total crude oil reserves in 2014. Over the years, Saudi Arabia has built its financial strength from oil revenues, but Iran was not able to achieve the same due to the economic sanctions imposed on it by USA, originally in 1979, strengthened in 1995 and then again in 2012.

Recent developments finally gave hope for Iran to catch up, though the process is expected to be slow. While the agreement with P5+1 has allowed Iran to stabilize its oil exports at about 1 million barrels per day, it is still 50% less than what Iran used to export before 2012. Another challenge are the declining oil prices, which have reached a level below US$30 per barrel in January 2016 from US$105 per barrel in 2012. Iran’s oil revenue accounted for about 12.5% of its GDP in 2012, a share that declined to 6.25% in 2014. The infrastructure spending share in GDP also declined by 3% points since 2012, as Iran has limited access to financing and the Oil Stabilization Fund (OSF), a fund to stabilize the economy against fluctuating oil revenues, was no longer operational.

In a scenario where majority of the economic development of the country is dependent on the natural resources such as oil and gas, once the oil and gas market slows down, the economic growth slowdown soon follows. Market fluctuations for oil and gas industry have led oil-based economies to diversify into other industries or build up financial reserves to sustain economic fluctuations. For Iran, aviation might be a tool to achieve that – the country plans to re-build aviation industry to make way for the tourism industry, which the country hopes to develop as part of the shift from being an oil-based economy.

The first step in this shift for Iran is to gather investment to develop and support the growth of aviation industry. However, Iran is in dire need of investments from external sources since it has no funds, assets, or resources to re-build or stabilize the economy. Iran was able to gain access to some funds worth US$32 billion from unfrozen assets abroad, which were available to the country once the sanctions were lifted – however, these frozen assets are not unlimited, and the Airbus deal worth US$27 billion was made from those unfrozen assets. At the same time, the investments cannot come from the growth of other industries such as manufacturing or agriculture, as any growth achieved from these industries will have to attribute to fiscal spending on developing human resources such as education and health of the population. Iran also needs trained staff personnel to support the development of non-oil based industries such as aviation and transportation. To do this, the country has to invest in training institutes and infrastructure to sustain the economic development Iran is hoping to achieve in the next few years.

The country is trading its natural resources to lure international companies to start or increase their businesses with Iran. For example, Total, a France-based oil and gas company, has signed a Memorandum of Understanding (MoU) to buy crude oil from Iran and promised research to look for other opportunities so it can invest in Iran. Such a deal brings in investment, which will help Iran to stabilize the economy or build financial reserve to later on invest in other industries such as aviation.

Currently, Iran needs close to US$220 billion in investment to uplift its aviation industry. The country cannot afford to sponsor this investment from its own reserves or funds from any other industry growth. These funds will need to be used to help maintain the economic stability as Iran is struggling with high unemployment and inflation. One of the best options for Iran is to leverage the natural resources such as oil and gas to other countries; in the pre-sanction period Iran could only do that with Asian countries such as China, India, or South Korea. Since the sanctions are lifted, Iran is open to expand its business options to European regions and USA as well.

EOS Perspective

The World Bank has forecast an optimistic growth of 5.8% for Iranian GDP in 2016, owing to the fact that Iran’s economy will benefit from the lifting of the sanctions from six super powers. In spite of the promise of industry growth, Iran has a lot on its plate to deal with before it can be considered a stable economy.

For starters, Iran has to gain the market share it once had in the pre-sanction period in the global oil industry, which means that it is going to adopt an aggressive strategy to gain back its lost clients especially European clients such as France, Italy, and Greece (in the pre-sanction period, these European countries were its major clients for oil trade). These countries used to do business with Iran but shifted to Saudi Arabia, Russia, and Iraq once the sanctions were imposed. Iran’s oil minister, Mr. Bijan Namdar Zanganeh, in an interview on November 5, 2015 was clear on Iran’s next steps when he said “Our only responsibility here is attaining our lost share of the market, not protecting prices”. Iran plans to sell oil at rates cheaper than its counterparts to gain the European clients back, which may result into an oil surplus in the market pushing the oil prices lower than US$30 per barrel. This also means that Iran would have short and medium term issues building up investments it needs to develop the aviation industry or even stabilize the economy to reduce unemployment and inflation. Apart from investments, Iran has to make changes to its existing policies to incorporate the growth of aviation industry. The country also has to gain access to trained and skilled staff who can handle the organizational and operational change the aviation industry will undergo in the next few years.

One major challenge for the aviation industry is that Iran still has not finalized a contractor for the repairs and maintenance of its already aging fleet. Lufthansa, the German-based aviation company, is in talks with Iran to set up a maintenance unit in Iran but nothing has been set it stone yet. With new airplanes in the pipeline and no immediate maintenance support for Iranian airlines, the industry growth might continue to be hampered more than before.

Iran needs to give priority to keep the in-service fleet in service. It might take years for aviation companies such as Airbus to complete the orders and during that time it is imperative that the older planes have access to machinery and repairs to stay in business.