Developing Airlines and Air Cargo Under Sanctions: Networking, Standardization, and Public Participation in the Aviation Industry
Amirhossein Khodaei – Researcher
Expanding Capacity Under Conditions of Constraint
Developing Iran’s Aviation Industry Under Sanctions
Under sanctions, the development of Iran’s aviation industry should not focus solely on purchasing and owning aircraft. Instead, it should prioritize expanding the country’s effective aviation capacity and supporting services. This approach seeks to strengthen the sector’s resilience by establishing a network of small, specialized, regional, community-based, and university-supported companies.
The primary objective is to enhance passenger and cargo transport capacity, maintenance services, training, ground handling, fleet management, and logistics connectivity. Even companies that do not own aircraft can play an important role by managing routes, services, cargo operations, and market connections.
To increase overall capacity, a range of measures is proposed, including long-term aircraft leasing, leasing with support services, shared fleet ownership, the use of fleet management companies, returning grounded aircraft to service, converting suitable passenger aircraft into freighters, expanding regional airlines and cargo carriers, cooperating with Iranians living abroad, establishing aviation logistics cooperatives, and attracting small-scale private investment.
One approach to expanding aviation capacity under sanctions is cooperation with companies registered in different countries to manage various segments of the aviation value chain, including air cargo, flight operations, technical services, training, spare parts supply, and fleet support. Such cooperation should be implemented with full legal transparency, compliance with applicable regulations, and careful risk management, while making use of regional partnerships, private-sector capabilities, and the expertise of Iranians living abroad. Countries such as Iraq, Oman, Qatar, Türkiye, Armenia, Azerbaijan, Kazakhstan, Tajikistan, Russia, China, India, Malaysia, Indonesia, as well as some African and Latin American countries, could provide suitable platforms for such cooperation.
The expertise of Iranian-owned companies and Iranian professionals active in the global transportation and logistics industry can also contribute through investment, the transfer of managerial experience, specialist training, the development of export markets, the design of cargo and flight management systems, the transfer of managerial know-how, and participation in maintenance, training, and air cargo centers.
The paper also proposes establishing an International Association of Iranians Active in Logistics and Aviation to create a comprehensive database of Iranian-owned companies, executives, investors, and specialists, thereby facilitating investment, professional consulting, and the transfer of knowledge and experience to Iran’s aviation sector.
Development of Specialized Airlines and Air Cargo
To develop air transportation, establishing small, agile, and specialized airlines, rather than focusing exclusively on large carriers, represents a more suitable strategy. With limited fleets, clearly defined routes, and lean cost structures, these airlines can expand the overall capacity of the aviation sector.
Regional airlines can make a significant contribution to balanced regional development by connecting medium-sized cities and less-developed provinces with major hubs, activating underutilized airports, reducing dependence on road transportation, and supporting regional tourism, healthcare services, and trade.
Specialized airlines dedicated to religious travel, medical tourism, and tourism services can also focus on well-defined markets—such as pilgrimage travel, health tourism, and exhibition-related travel—allowing them to meet targeted demand instead of competing broadly across all market segments.
Low-cost carriers can stimulate additional travel demand by reducing costs through improved management, digital sales platforms, technological innovation, and more efficient fleet utilization. Cost reduction, however, should never come at the expense of safety or technical standards.
Professional charter companies should work closely with hotels, hospitals, tourism agencies, exhibition organizers, and pilgrimage centers to develop integrated air travel packages. Their operations should be based on transparency, accountability, performance rating systems, and integration with regulatory oversight mechanisms.
Under conditions of logistics-related constraints, the development of air cargo should be regarded as one of the strategic priorities of Iran’s aviation sector. Air cargo plays a direct role in exports, the import of essential goods, pharmaceuticals, medical equipment, industrial components, agricultural products, e-commerce, express mail, and time-sensitive shipments. Therefore, specialized cargo airlines should be established according to cargo type, transport routes, delivery schedules, and market demand. Compared with passenger transport, air cargo offers greater operational flexibility and can more rapidly contribute to foreign trade, exports, and foreign exchange earnings.
Moreover, not every air cargo company needs to own aircraft. Some companies can specialize in managing the logistics chain by transporting cargo from production sites to final destinations, linking air transport with railways, highways, seaports, free trade zones, industrial parks, and export terminals. Such integrated logistics companies can serve as a vital link between Iranian producers and international markets.
The paper also emphasizes expanding air cargo operations at non-central airports, enabling provincial airports to become specialized cargo hubs based on their regional advantages. These may include airports serving agricultural exports, industrial production, border trade, combined sea-air transportation, and logistics services associated with pilgrimage destinations. This approach supports more balanced regional development while reducing pressure on major central airports.
Expanding Aviation Capacity Through Fleet Recovery, Public Participation, and Quality Standards
One of the aviation sector’s important untapped capacities lies in returning grounded aircraft to service. Many aircraft have been withdrawn from operation due to shortages of spare parts, maintenance challenges, managerial shortcomings, ownership disputes, or a lack of economic viability. To address this issue, the paper proposes a national “Grounded Fleet Return-to-Service Program” that would include technical assessments, cost estimation, economic prioritization, spare parts procurement, restructuring of ownership or operational arrangements, assignment of operations to capable companies, and comprehensive safety oversight. The objective is to increase the country’s operational flight capacity without relying on the immediate purchase of new aircraft.
The paper also emphasizes broadening public participation in the aviation industry through the involvement of citizens, cooperatives, small businesses, knowledge-based companies, technical workshops, and universities. This participation should be organized through professional and transparent mechanisms in projects such as airport cold-storage facilities, cargo terminals, cargo-handling equipment, export packaging centers, cargo tracking systems, training centers, flight simulators, maintenance of ground support equipment, specialized air cargo companies, and financing programs for returning grounded aircraft to service.
It further proposes establishing aviation logistics foundations and cooperatives in provinces with airport capacity. These organizations could bring together producers, exporters, transport companies, knowledge-based enterprises, universities, small-scale investors, postal operators, chambers of commerce, and e-commerce businesses to participate in activities such as packaging, cold-chain logistics, cargo transportation, warehousing, export services, cargo capacity marketing, and even aircraft leasing.
To ensure the quality and professionalism of these cooperatives, universities should play a central role in education, standardization, business model development, risk assessment, and the training of managers, serving as the scientific and professional foundation of this framework.
The paper also highlights the contribution that small and medium-sized enterprises (SMEs) can make to aviation development. These businesses can participate in manufacturing non-critical aircraft components, producing ground support equipment, export packaging, air cargo containers, cold-chain services, cargo management software, light maintenance of ground equipment, cleaning and preparation services, ground transportation of air freight, specialized training, and cargo tracking and customer support services. This approach transforms the aviation industry into a broad ecosystem encompassing manufacturing, services, technology, and employment.
Finally, the paper stresses that expanding the number of aviation companies should be accompanied by stronger standardization and quality improvement. Passenger and cargo airlines should be evaluated according to safety, financial capability, technical condition, service quality, and management performance. A national rating system should be established based on indicators such as flight safety, fleet condition, maintenance quality, operational reliability, contractual transparency, passenger and cargo customer satisfaction, workforce training, crisis management, protection of passenger rights, on-time performance, cargo tracking capability, and the quality of packaging and delivery. Companies achieving higher ratings should receive incentives such as priority access to desirable routes, financial support, discounts on airport services, and improved access to partnership projects.
Quality Standards, Governance, and Strategic Development of the Aviation Sector
The paper proposes the establishment of a National Air Transport Quality Center to support the professional development of the aviation industry. Bringing together the Civil Aviation Authority, universities, the private sector, insurance companies, professional associations, and consumer representatives, the Center would be responsible for developing passenger and air cargo service standards, monitoring and rating aviation companies, evaluating workforce training, reviewing structural complaints, publishing periodic reports, and promoting improvements in safety, service quality, and transparent support criteria for aviation companies.
To strengthen the competitiveness of air cargo in regional markets, the paper recommends adopting a National Air Cargo Standard. This framework should cover standardized packaging, delivery scheduling, cargo tracking, cargo insurance, transportation of perishable goods, pharmaceuticals and other sensitive cargo, cold-chain logistics, final delivery, liability for damage or delay, integration with customs and commercial systems, and transparent pricing. Such standards are intended to strengthen the confidence of exporters, importers, insurers, and international customers.
To improve the competitiveness of small aviation companies, the paper also recommends establishing strategic alliances for shared services. These partnerships could include ticket sales, cargo management, training, maintenance, spare parts procurement, legal and insurance services, crisis management, cargo tracking systems, complaint handling, marketing, and information technology support. Sharing these services would reduce costs while improving operational quality.
Within this model, the role of government shifts from ownership and direct project implementation to regulation, supervision, and facilitation. Government responsibilities include simplifying licensing procedures, preventing monopolies, supporting start-up companies, establishing stringent safety standards, ensuring transparency in route allocation, supporting export-oriented air cargo, developing airport infrastructure, creating specialized logistics zones, supporting project financing mechanisms, facilitating the participation of universities and cooperatives, protecting investors’ legal rights, and maintaining a competitive market environment. The objective is to create a transparent, well-regulated, and competitive framework for all participants in the aviation industry.
Implementation of this strategy should begin with identifying existing capacities, including grounded aircraft, airports suitable for development as cargo hubs, private companies, small and medium-sized enterprises, Iranian professionals active in global logistics, and commercially viable passenger and cargo routes. This should be followed by regulatory reforms, including simplified licensing procedures for small airlines, specialized licenses for air cargo operators and fleet management companies, standards for charter companies, a legal framework for aviation logistics cooperatives, and a national company rating system.
Conclusion
The concept of “logistics warfare” suggests that national security and economic resilience increasingly depend on transportation infrastructure, trade networks, and logistics corridors. Within this context, the aviation sector plays an important role in strengthening strategic resilience.
Accordingly, rather than relying on centralized development alone, the paper proposes public participation, cross-border networking, and standardized quality systems as the principal strategies for increasing the resilience of Iran’s aviation industry under sanctions.
It further emphasizes connecting airports to railways, highways, seaports, and border terminals, developing regional airports as specialized air cargo hubs, and raising service and safety standards as measures to strengthen Iran’s position within regional and international transport networks.
Within this framework, the government, acting primarily as a regulator and facilitator, can mobilize domestic investment through cooperation among society, industry, and universities. The integration of data-driven management, local economic participation, regional cooperation, and technical standards is presented as the foundation for building a sanctions-resilient aviation ecosystem.
