A new lessor from the Middle East?

Dino D'Amore
By Dino D'Amore February 22, 2016 17:08

A new lessor from the Middle East?

Iran’s Ministry of Roads and Urban Development has stated that Iran intends to link with Oman to establish an aircraft leasing company, a joint airline and cooperate in the Tehran Imam Khomeini Airport expansion project with Oman. This news comes as Iran is already in talks with leasing companies to establish a platform that will most likely be based in Dublin or Singapore with a remit to quickly build a book of some 150 aircraft. As talks continue there is little doubt that there is a great deal on the table at this time for those willing to review and redraw their risk mapping of the Middle East.

The Iranians are well aware of the problems they face in connecting their country to the world again and thus setting up their own lessor is a logical step, although there is no point in having aircraft flood into Iran unless work starts on infrastructure at speed.

Meanwhile, all eyes are on airlines in the USA following the latest increase in fares by Southwest, which targets premium and late bookings. The door is open now for other airlines to follow, as such it is highly likely that US domestic airlines will be able to offset any slowing passenger demand (not that this has been seen in any significant fashion as yet)  with higher pricing. As is the norm these days, listed airlines in the USA have a strong outlook and remain undervalued.

Dino D'Amore
By Dino D'Amore February 22, 2016 17:08