Iran pegs airport revamp cost at $250m

Iranian airports need $250 million worth of radar equipment and navigation systems following the lifting of economic sanctions, according to the Financial Tribune.

“We’re planning to revamp all our airport equipment to increase our safety and security levels,” said Rahmatollah Mahabadi CEO of the Iran Airports Company.

Upgrading airport equipment has been a government priority and in April, the government signed an agreement with French aerospace company Thales Group to buy three airport surveillance radars for Tehran’s Mehrabad International Airport and airports in the southern cities of Shiraz and Bandar Abbas to replace equipment.

“We are not in good condition in terms of airport equipment,” Mahabadi is reported as saying. “Our airports’ lighting system, for instance, dates back to 45 years ago.”

“All of our airports, except Imam Khomeini International Airport, are running at losses. Even Tehran’s Mehrabad Airport with some 400 takeoffs and landings a day is not making a profit,” he said, explaining that operational costs currently outweigh revenues.

In August, Iran’s Aviation High Council announced it would permit investors with as little as 300 billion rials ($8.57 million) operating a single aircraft seating less than 100 to establish airlines from smaller suburban airports in a bid to improve airport performance.

 

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