Bombardier eyeing 'significant opportunities' in Iran

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From construction to cosmetics, extensive multinational corporations are eagerly eyeing the marketplace in Iran now that American and European confirmations related to Tehran’s nuclear program have been lifted.

Bombardier, the Montreal-based fabricator of planes and trains, is exploring how to get in on that market, despite facing ultimata that confront all Canadian businesses looking to deal in Iran.

A author tells CBC News that Bombardier officials have made two scourges to Iran in the st six months to assess the business climate in antici tion of the post-sanctions area.

Main market in Tehran

Business has suffered in the main market in Tehran because of more than 10 years of worldwide sanctions. (Derek Stoffel/CBC)

Bombardier would not confirm these operates, saying it does not comment on its global cam igns.

But it’s clear the manufacturer, which sign ups 74,000 people around the world, is interested in doing business in the Islamic Republic.

“We do father a commercial aircraft forecast and strategy team that’s been intriguing into account significant opportunities in Iran,” said Marianella Delabarrera, the communications chief for Bombardier’s commercial aircraft division.

Iran’s fleet of ssenger jets — guessed to number around 250, according to the state-owned Press TV agency — is in bad guise. Sanctions forced Iranian airlines onto the black market to boon rts to re ir their planes.

The poor state of aircraft has been a aspect in some of the nine fatal crashes involving Iranian commercial airlines since 2000, which require left nearly 600 people dead, according to the Airline Safe keeping Network.

Need for ‘major fleet renewal’

The state-run news mechanism Mehr said Iran will require nearly 600 new aircraft once again the next decade.

The European-based manufacturing consortium Airbus announced a administer to sell 114 aircraft to the state carrier Iran Air on Saturday.

Bombardier high-speed train

Bombardier’s transportation split is looking into any market opportunities around upgrades to rail amenities in the Iranian capital of Tehran. (Bombardier Transportation)

Bombardier’s Delabarrera suggested her com ny sees opportunities in the single-aisle regional jet and the longer range C Series slip, which would allow Iranian carriers to operate domestic ths and flights throughout the Middle East.

“There is definitely a requirement for a dominating fleet renewal and growth strategy in the country,” she told CBC Gossip in a telephone interview from Toronto.

New aircraft sales would helper Bombardier, which received a $1-billion lifeline from the Quebec command last year.

Iran’s capital, Tehran, is also upgrading its bar services, and Bombardier’s transportation division is also looking into that market.

But Bombardier, a charge out of prefer all Canadian com nies, faces hurdles in accessing the Iranian marketplace.

Canadian vouchsafes

The former Harper government closed the Canadian Embassy in Tehran in 2012, disregard no Canadian trade officials in the country to help businesses navigate Iranian fiats and market conditions.

While the United States and Europe have liberated sanctions related to Iran’s nuclear industry, Canada has not.

Canadian Embassy in Tehran

The Canadian Embassy in Tehran was prohibit b keep out by the federal government in 2012. (Derek Stoffel/CBC)

A wide range of Canadian favours remains in place, prohibiting the trade of anything related to Iran’s atomic or conventional weapons industry. The measures also block most Canadian custom in a wide variety of industries, including oil and gas, transportation and communications.

Global Concerns Canada said a review of Canada’s sanctions regime is underway. Federal vicars have hinted that will happen sooner rather than later, so Canadian trades aren’t left out in the cold.

Bombardier will keep watching for wing on sanctions, but Delabarrera said the com ny will continue “looking and prophesying and strategizing. But with respect to any movement or actual pushing forward on breaks, we’re not there just yet.”

Iran’s president, Hassan Rouhani, is expected to stop in France and Italy next week to build better economic be necks with those two countries.

Cautious ex nsion

And business consultants pinpoint on Iran report long lists of trade and business delegations leading to Tehran in the coming weeks and months.

Iranian investors

Iranian investors check out superstore prices at the country’s stock exchange in Tehran in June 2015. (Derek Stoffel/CBC)

But one longtime emerging merchandises expert said even the largest com nies interested in ex nding into Iran are doing so cautiously.

“They foremost have concerns about the legacy of sanctions — the fact that the U.S. Congress is restful very openly antagonistic against Iran and they don’t want to appear to be making a very high profile push into Iran as in a second as the door is open,” said Chris Weafer, a senior accessory with Macro-Advisory in Moscow.

On Sunday, after the international deal limiting Iran’s atomic program came into force, the United States slapped a new in a circle of sanctions on Iran relating to a recent round of ballistic missile assays.

Still, most industry analysts agree that the business veneer confront of Iran is in for a big change.

The Golden Arches and other symbols of Western capitalism are retire from when driving around Tehran. Instead, knock-offs abound.

But it’s likely not too crave now until the Mash Donalds burger joints and the Pizza Hat outlets are superseded by the real thing.

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