Page 47 - IRANRptNov19

Iran’s auto production drops 38.3% in four-month period
difficulties, namely a lack of liquidity, pricing, raw material costs and letters of credit. Some of the issues could be addressed by removing government price controls on parts, he added.
Iran’s auto parts makers have suffered in recent years because the country’s two main carmakers, Iran Khodro (IKCO) and SAIPA, have struggled to pay invoice sums owed to them.
In July, IKCO and SAIPA signed a deal with local car component makers worth around $60mn to promote localisation of production, according to IRNA. As part of that agreement, cash—some of which, it is believed, is owed from previous purchases from the parts manufacturers—would be diverted into developing 35 localised car parts, including a head gasket, hydraulic parts and turbochargers.
Auto production in Iran has substantially declined in recent months in the face of US sanctions. Industry figures show that the country’s automakers manufactured 266,961 vehicles in the first four months of the 2019/2020 Persian calendar year (started March 21),​ ​marking a 38.3% y/y deline​.
In recent months the Iranian auto industry has attempted to pull back on some of its losses with moves including initiatives to switch to the indigenous production of car models.
The hotly anticipated Peugeot 301 sedan,​ ​recently showcased by Iran Khodro Company​ (IKCO), was produced without any direct help from Peugeot. Some 60% of its parts are purportedly from Iranian manufacturers, with the percentage expected to increase to 85% in the next few months.
9.1.3 ​Aviation sector news
Iran to upgrade entire airport system with IFPS technology
Iran’s airport traffic falls 5% y/y in fourth Persian calendar
All Iranian airports are to be equipped with the Integrated Initial Flight Plan Processing System (IFPS) by the end of the current Persian calendar year in mid-March 2019, ILNA has reported.
Iran began overhauling its international and domestic airports after the multilateral nuclear deal that lifted major sanctions on the country was signed in late 2015, but the renewed heavy sanctions from the US have slowed down progress including when it comes to the purchase of technology required by international aviation organisations like the International Civil Aviation Organization (ICAO) as well as airlines.
The IFPS is a centralised service of the Network Manager Operations Centre (NMOC) designed to rationalise the reception, initial processing and distribution of flight plan data.
Iran Airports and Air Navigation Company's Air Traffic Control Bureau said the plan is to roll out the IFPS system to all airports in coming months, with several major hubs already upgraded to the system.
Airports including the two main airports in Tehran, Mehrabad and Imam Khomeini, are among those upgraded to the new system so far, the bureau stated.
Iran’s airports saw some 34,065 take-offs and landings during the fourth 2019/2020 Persian month (June 22- July 22), marking a 5% y/y decline, Tehran’s ​Financial Tribune h​ as reported.
Iranian travellers, both domestic and international, have felt the pinch in the past year with flight prices increasing because of the severe weakening of the Iranian rial (IRR) sparked by US sanctions.
A total of 4.19mn passengers and 42,300 tonnes of cargo were reportedly
47​ IRAN Country Report​ November 2019 www.intellinews.com