The Effects of Sanctions on the Civil Aviation Industry of Iran

Introduction

Despite containing exemptions and exceptions, international sanctions regimes fail to differentiate effectively and often result in negative consequences for ordinary citizens in sanctioned countries, beyond the realization of the goals of the sanctioning authority. A clear illustration of this can be seen in the previous Security Council sanctions (prior to the JCPOA agreement) and the current unilateral sanctions imposed by the United States of America on the Islamic Republic of Iran. One sector that these sanctions have particularly impacted is Iran’s civil aviation industry. In the following text, we will delve into this topic in more detail, following a brief explanation of the relevant concepts.

 

Conceptology

According to the Convention on International Civil Aviation 1944, aircraft are divided into Civil and State based on their function; State aircraft are dedicated to military affairs, customs services, and police.[1] Under ICAO[2] regulations and standards, Civil or non-state aircraft carry out commercial air transport (for passengers, cargo, and post), aerial work (such as photography, mapping, relief, etc.), and general aviation operations.[3] It must be noted that the term “aircraft” includes all types of airplanes, helicopters, balloons, and similar devices.

 

An overview of the going of imposed sanctions

Since the 1990s, Iran’s aviation industry has been subjected to sanctions. These sanctions have severely restricted the sale of airplanes, airplane parts, and necessary equipment to Iran. They have also prevented any investment in the industry and the conclusion of purchase agreements with companies in this field.[4]

Additionally, from 2006 to 2009, resolutions 1737, 1747, 1803, and 1929 of the Security Council established a comprehensive system of international sanctions in response to issues related to Iran’s nuclear program. These sanctions included extensive restrictions on the sale of parts and transfer of technology in various fields, including the air military industries, which also impacted Iran’s civil aviation industry. In line with these sanctions, the United States also imposed sanctions against Iran, and the European Union approved similar measures, including the ban on servicing and accepting Iranian cargo airplanes at European airports.[5]

Following the conclusion of the JCPOA agreement in 2015, the sanctions resolutions were lifted, and the states that had imposed sanctions against Iran made commitments. One of the agreed-upon provisions pertained to the aviation industry in Iran. According to the agreement, the United States was expected to allow the sale of commercial passenger aircraft, aviation parts, repair services, safety inspections, and related services for civilian use.[6] In light of the JCPOA, Iran entered into purchase contracts with Boeing, Airbus, and ATR companies, with plans to add approximately 200 new airplanes to its aviation fleet. However, the United States’ withdrawal from the JCPOA in 2018 and subsequent imposition of new unilateral sanctions severely limited the delivery of new airplanes to Iran, resulting in less than 20 new airplanes entering the country.[7] In recent years and months, additional sanctions have been imposed to intercept the development of Iranian missile and drone programs, further restricting the sale of aviation industry parts to Iran and prohibiting services for some Iranian airlines.

 

Objective Results of Imposed Sanctions

The impact of sanctions on the civil aviation industry of the Islamic Republic of Iran is evident in various aspects. These include the exhaustion of Iran’s air fleet, the non-use of foreign aircraft using Iranian air routes, the deterioration of airport facilities, the inability to benefit from new piloting training, the prohibition on servicing Iranian aircraft abroad, sanctions on financial facilities and insurance coverage for aviation projects, and the inability to invest in such projects.[8] This text will focus on some of these consequences.

The exhaustion of air fleet and flight equipment: In accordance with global standards, aircraft that are 20 years old are considered outdated. However, many of Iran’s planes are even older and should be retired [2]. It has been reported that the average age of Iranian planes is 25 years, and out of the approximately 340 planes in the country, only around 100 are operational due to a lack of spare parts.[9] According to US sanctions against Iran, the import of any aircraft or its equipment is prohibited if more than 10% of the used parts are of American origin. This restriction prevents Iran from modernizing its air fleet through major aircraft manufacturers.[10] It is important to note that banking sanctions targeting Iran have also made financial transactions with the country risky for companies and private actors.

Within Iran’s civil air fleet, there are aging aircraft models such as Airbus A300, Fokker 100, and Boeing MD. The production of Airbus A300 airplanes has been discontinued for around a decade, yet Iran still operates models that are more than twice the average age worldwide. Furthermore, over 60% of Iranian helicopters are in a worn-out condition.[11] This issue is particularly concerning considering the limited number of helicopters available for air medical services in Iran.[12]

In addition to the impact on Iranian aircraft, the state of airport facilities should also be examined. As a result of sanctions, Iran faces challenges in maintaining and updating crucial infrastructure such as communication systems, radar systems, navigation equipment, maintenance check flight capabilities, and other necessary facilities.

Lack of benefit from the facilities of airports in other countries: Furthermore, the inability to benefit from airport facilities in other countries is a significant consequence of sanctions. Certain Iranian airlines, including Homa, Mahan, Caspian, and Meraj Air, have faced sanctions by the United States for various reasons in recent years. Consequently, some European countries have refused to provide services such as refueling to Iranian aircraft.[13]

Numerous air accidents: Numerous air accidents have occurred in Iran, primarily due to a lack of necessary parts and facilities, as well as the wear and tear of Iranian aircraft, particularly civil airplanes. This has resulted in Iranian airplanes becoming perilous for the country’s civilians. The impact of sanctions on access to parts and the presence of exhaustion are clearly evident in several air accidents that have taken place in Iran. For instance, the crash of the Topolov Tu-154 airplane owned by the Caspian company near Qazvin in 2009, which claimed the lives of 168 passengers, and the crash of the Iran-140 assembled from the Russian Antonov airplane owned by the Sepahan company near Tehran’s Mehrabad airport in 2014, resulting in the deaths of multiple passengers, were both caused by technical defects and engine damage.[14] The issue of aircraft exhaustion and the deterioration of parts is also significant, as demonstrated by the helicopter accident involving the late President of Iran, Seyed Ebrahim Raisi, and his companions on May 19, 2024..[15]

 

Affected International Norms

The impact of sanctions on Iran’s civil aviation industry has resulted in the violation of the Convention on International Civil Aviation 1944, particularly Article 44, which outlines the objectives of the International Civil Aviation Organization (ICAO). Enhancing aviation security and meeting the global air transportation needs of people are among the goals stated in this article.

It is noteworthy that the International Court of Justice references the impact of American sanctions on civil aviation and the potential threat to human lives in its Provisional Measures Order in the case of Alleged Violations of the 1955 Treaty of Amity, Economic Relations, and Consular Rights (the Islamic Republic of Iran v. United States of America). According to the order, the Court has obliged the US to remove barriers to accessing parts, equipment, and services such as repair, maintenance, and inspection for Iran’s domestic aviation.[16] However, the US continues to maintain its position.

[1]. Convention on International Civil Aviation (Adopted on December 7, 1944, and entered into force on April 4, 1947) 15 UNTS 295, Art.3.

[2]. International Civil Aviation Organization (ICAO)

[3]. Annex 6 to the Convention on International Civil Aviation: Operation of Aircraft, Ninth Edition. (2018), I.1.1-I.1.3.

[4]. Azam Zare Chahoki, “Sanction against Iranian Aviation: An Approach to the Chicago Convention”, Journal of Legal Researches 7, No.2 (2008): 176-177. (In Persian)

[5]. EU Council Decision, 26th July 2010, 2010/413/CFSP.

[6]. Joint Comprehensive Plan of Action, Annex II (14 July 2015), para.5

[7]. “Domestic boycott on airplanes?”, World of Economics, 11 October 2022, Last visit on 6 June 2024, Available at https://donya-e-eqtesad.com/%D8%A8%D8%AE%D8%B4-%D8%AD%D9%85%D9%84-%D9%86%D9%82%D9%84-58/3906857-%D8%AA%D8%AD%D8%B1%DB%8C%D9%85-%D8%AF%D8%A7%D8%AE%D9%84%DB%8C-%D9%87%D9%88%D8%A7%D9%BE%DB%8C%D9%85%D8%A7%D9%87%D8%A7 . (In Persian)

[8]. Economic Commission of ICAO ‘Conflicting strategies in aviation safety (Presented by Iran (Islamic Republic of))’ (21 June 2019) A40-WP/475 EC/40, para.2.2; Soha Sepanlou, Maryam Moradi and Seyed Baqer Mirabbasi, “Effects of International Sanctions on Iran’s Aviation Industry”, Political and International Research Quarterly 13, No. 51 (2022): pp. 34-35. (In Persian)

[9]. “The age of our planes has increased due to the embargo; On average, they are 25 years old”, Entekhab news base, 26 July 2023, Last Visited on June 7, 2024, Available at https://www.entekhab.ir/fa/news/735039/. (In Persian)

[10]. Helicopter crash kills Raisi: Are sanctions behind Iran’s aviation crisis?, Al-Jazeera, 20 May 2024, Last Visited on June 7, 2024, Available at https://www.aljazeera.com/news/2024/5/20/helicopter-crash-kills-raisi-are-sanctions-behind-irans-aviation-crisis.

[11]. John Paul Rathbone, Sylvia Pfeifer and, Philip Georgiadis, “How sanctions played havoc with Iran’s aging helicopters”, Financial Times, May 21, 2024, Last Visited on June 7, 2024, Available at  https://www.ft.com/content/f5a9be7a-b446-426f-8b04-ee6a340bb781.

[12]. Human Rights Council, ‘Visit to the Islamic Republic of Iran Report of the Special Rapporteur on the negative impact of unilateral coercive measures on the enjoyment of human rights, Alena Douhan’ (October 4, 2022) UN Doc A/HRC/51/33/Add.1, para.51.

[13]. “Iran Air is in ‘99% of European airports under fuel embargo’”, DW Persian, April 2, 2024, Last Visited on June 9, 2024, Available at https://www.dw.com/fa-ir/%D8%A7%DB%8C%D8%B1%D8%A7%D9%86%D8%A7%DB%8C%D8%B1-%D8%AF%D8%B1-%D9%A9%D9%A9-%D8%AF%D8%B1%D8%B5%D8%AF-%D9%81%D8%B1%D9%88%D8%AF%DA%AF%D8%A7%D9%87%D9%87%D8%A7%DB%8C-%D8%A7%D8%B1%D9%88%D9%BE%D8%A7%DB%8C%DB%8C-%D8%AA%D8%AD%D8%B1%DB%8C%D9%85-%D8%B3%D9%88%D8%AE%D8%AA%DB%8C-%D8%A7%D8%B3%D8%AA/a-68798147.  (In Persian)

[14]. Sepanlou, Op. cit., p.34; Helicopter crash kills Raisi: Are sanctions behind Iran’s aviation crisis? Op. cit;

[15]. Ibid.; Rathbone, Op. cit.

[16]. Alleged Violations of the 1955 Treaty of Amity, Economic Relations, and Consular Rights (Islamic Republic of Iran v. United States of America) (Request for the Indication of Provisional Measures: Order) ICJ Press Release 2018/50, https://www.icj-cij.org/sites/default/files/case-related/175/175-20181003-PRE-01-00-EN.pdf, Last visited on June 9, 2024.