Iran has built a covert network to keep its aviation sector operating despite sweeping international sanctions, using front companies, smuggling routes and deceptive flight practices, according to a joint report by the Institute for National Security Studies and ColEven.
The report said Iran operates “a sophisticated, law-evading mechanism to support its aviation industry,” relying on shell and front companies in countries with limited transparency, including parts of Africa, Southeast Asia and Central Asia, to acquire aircraft and components and transfer them rapidly to avoid detection.
Aircraft are moved through layered ownership structures and “burst activity” transfers before filing flight plans that pass near Iran, allowing planes to enter Iranian airspace and make “fabricated critical malfunction” emergency landings, after which they are absorbed into Iranian fleets, the report said.
It said airlines such as Mahan Air and Qeshm Fars Air function as logistical arms of the Islamic Revolutionary Guard Corps, operating under the Quds Force to move weapons, equipment and funds to regional proxy groups, adding that the sector has shifted “from a civilian transportation tool to a core component of the regime’s economic and security strategy.”
The report said sanctions have severely degraded Iran’s civil aviation, with about 60% of passenger aircraft grounded and the average fleet age at around 28 years, forcing airlines to cannibalize planes for spare parts and rely on smuggling networks to remain operational.
It added that the aviation sector illustrates “a sophisticated integration of state, market, and underground networks that operate in regulatory gray zones and disrupt efforts to globally enforce the sanctions,” even after the UN Security Council reimposed sanctions under the snapback mechanism and the US maintained broad restrictions under laws such as IFCA, ISA and CAATSA.