Intrepid Aviation airline sponsor reveals itself as none other than Delta Air Lines - Delta has confirmed that it is in talks with Skymark Airlines to make an investment as part of its restructuring plan. Such an investment would of course provide Skymark with the connectivity it requires to succeed while Delta gets both feet in the door at Tokyo’s goldmine of an airport – Haneda.
The floodgates may well open in the near future for oil firms, airlines, aircraft and engine manufacturers, MROs, parts suppliers, infrastructure companies, airport operators – but right now the only certainty that we all knew would come with any US-Iran agreement is a fall in oil prices. Oil-rich Iran can and will now ramp up its energy exports, access international finance and open the doors to global investors. Even though full implementation of the agreement reached today will likely take many months with a pace set by Iran meeting its obligations, crude futures have fallen sharply this morning with Brent at $56.70 a barrel, while US crude stands as I type at $51.15. This turn of events that we hoped would come, should, if all goes well, now seal oil prices down at lower levels for at least the next 12 months – Wonderful news for airlines and investors in the same.
Falling oil prices and Iran opening-up is a double boost for older aircraft. In the aviation sector many will argue that aircraft/engine manufacturers will be the main beneficiaries, but if Iran needs aircraft now, or indeed at any time over the next five to eight years, then are out of luck as the order books are full. The most economical use of funds would be to purchase more A340s at speed given that many of the type have been imported into Iran of late, AerFin and SRT might want to flip those A340s they have just purchased from Cathay Pacific straight into Iran at profit, on the other hand both BBAM and Orix Aviation have A340-300s for sale at this time – Will CMVs on the type increase slightly over the coming weeks and months? At any rate AerFin and SRT are well placed with aircraft and parts to service some Iranian requirements in the short term.
The purchase of 757s being released in the US market would also be a very good move for Iranian Airlines at this time. All that is in addition to the abundance of 737 and A320 aircraft on the market. But if Iran is looking for new equipment outside of the four engine mega structure market, which is the domain of the A380 and 747-8, it will have to turn to either Airbus for A330Neos of A330Rs or it will have to turn to the lessors or airlines that may wish to lease aircraft. There are older 777s to be purchased at favorable rates at this time, make no mistake there.