World Business and Economic Analysis
World Business and Economic Analysis
Iran Air CEO has announced that negotiations are in progress for conducting direct flights between Iran and the US.
Farhad Parvaresh, Chairman and Managing Director of Iran Air, referred to the resumption of refueling at airports in Western Europe following the lifting of international sanctions maintaining “previously, Iran Air was forced to load enough fuel to cover the outbound as well as part of the inbound sector of its flights and technical stops were often made in eastern European airports to top up when necessary resulting in longer flights, extra cost and inconveniences to passengers.”
“Currently, on the basis of a contract with France’s Total, Iran Air flights are supplied with necessary fuel in French airports,” noted the official adding “so far, London Heathrow, Amsterdam, Hamburg Fuhlsbuttel and Vienna airports have also resolved the issue for Iranian aircrafts while talks with other fuel companies are underway.”
“Following the lifting of international economic sanctions, Iran seeks to purchase 114 Airbus jets to renovate the aging fleet,” stressed Iran Air Chairman reiterating “hopefully, a part of the financing will be carried out by the National Development Fund of Iran.”
Farhad Parvaresh pointed out that preliminary talks have been held with manufacturing companies since the beginning of nuclear deal talks; “some firms had subjected the operation of contract to the implementation of JCPOA which is now successfully accomplished,” he explained.
He announced that the first new aircraft will enter the country after the signing of a contract; “sanctions had imposed great costs on Iranian airliners to the extent that 15 to 17 thousand dollars were spent on fuel in each flight.”
Parvaresh also noted that the number of flights will get elevated with the entry of new aircrafts to the fleet.
“Iran Civil Aviation Organization (ICAO) is conducting talks on direct flights between Iran and the US,” maintained the official concluding “daily flights to New York used to take place before the Islamic Revolution and they will hopefully get resumed in near future.”
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UK forwarding and logistics services group Seafast Logistics this week announced the formation of a joint-venture partnership with long-established Iranian logistics provider Seven Seas Tehran. This followed the lifting last weekend of nuclear-related trade sanctions imposed upon Iran.
Believed by the two companies to be the first of its kind, the joint venture will be known as "Iran Shipping & Logistics Limited" (ISLL) and was registered with UK authorities in August 2015, immediately following the announcement of the nuclear-related agreement with the European and US governments, freight forwarding industry's journal Lloyd's Loading List reported.
The respective owners of Seafast and Seven Seas have a long-established working relationship spanning over 20 years, dating back to the days of Contship Container Lines and CP Ships, which were headed at the time by Seafast CEO David Halliday.
During that time, Seven Seas acted as representatives of those shipping lines in Tehran. The chairman of Seven Seas Iran said he was delighted that developments now permit Seven Seas and Seafast to activate their plans to provide global shipping and logistics services from 90 countries to and from Iranian ports.
Halliday commented: “We have been patiently waiting for this opportunity, and through the collective knowledge and experience of Seafast and Seven Seas, our JV partnership “Iran Shipping and Logistics Limited” is now able to offer immediate solutions for container shipping, as well as break bulk, project cargoes, refrigerated goods and air freight into and from all Iranian ports.
ISLL will cover shipments under its own contracts of carriage duly insured and use its extensive global network to design and implement bespoke transportation solutions, according to individual customer requirements.
Planning meetings were reportedly convened in Tehran in the past week in anticipation of the sanctions being lifted. These were attended by a number of ISLL overseas members covering Asian and European regions, and chaired jointly by Seven Seas and Seafast, the founding partners of the JV company.
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Minister of Roads and Urban Development Abbas Akhundi in a meeting with Danish Foreign Minister Kristian Jensen on Wednesday called for Denmark partnership in profitable investments in Iranian infra-structure and transport sectors.
[Iran offers Denmark to invest in infra-structure and transport sectors]
Concerning maritime transportation Akhundi said that Iran has a major role in the peace and security of the region adding that Iran has allocated lands for construction of new ports in Persian Gulf and Oman Sea shores.
He called for cooperation on maritime transportation, saying there are plenty of opportunities to cede projects for ports development in Iran.
Akhundi said that cooperation in banking system, civil aviation are offered to Denmark for joint investment.
Denmark Foreign Minister Kristian Jensen said that he held fruitful meetings with Iranian senior officials, especially President Rouhani, and that the negotiations will be a base to develop relations between the two countries.
Jensen said that representatives from 15 big Danish companies are accompanying Denmark delegation.
Referring to geographical distance between the two countries and importance of energy for Denmark, Jensen said that Denmark has 10 percent share in world transportation and is progressive in construction and equipment of large ports in the world, so by lifting the sanctions, there would be large amount of economic activities in Iran.
He said that Denmark is highly experienced in the field of multi-lateral transportation and that in meeting with Minister of Finance and Economic Affairs as well as President Rouhani, he noticed that Iranian government is so eager for economic reforms.
To develop shipping cooperation between Iran and Denmark, representatives of 12 Danish companies active in the field of maritime and ports are working with Iran Shipping Lines (IRISL) and consider ways for developing bilateral cooperation.
Trade between the two countries made noticeable growth in past years rising from 70 million dollars in year 2,000 to more than 225 million dollars in year 2011.
Trade balance between the two countries is negative and Denmark imported 12 million dollars from Iran a year, while it exported 213 million dollars goods and services to Iran.
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