Iran Economy in Brief – No. 29

Lost Bees in Dust

This year honey production will be reduced due to heavy haze in the western areas of Iran.
More and more often, southern and south-western provinces of Iran experience the atmospheric phenomenon of haze; a mixture of dust, smoke and other dry particles.
This phenomenon does not threaten only people but also vegetation, animals and insects.
Flowers are covered with dust, bees lose their way back to their beehives and beekeepers in the mountains do not have access to masks and are not able to work.
Lots of rain this year led beekeepers to expect a 30% growth in production compared to the previous year, which now seems to have been in vain.

40% of Iranian Aircrafts Out of Order

Ministry of Roads and Urban Development says that Iranians annually spend between 3 to 4 billion USD to buy flight tickets from foreign airliners.
Another motivation for Iran to improve its civil aviation. Currently out of 273 aircrafts in Iran, 110 are inactive, i.e. 40% is out of work.
Average age of the Iranian active aircrafts is nearly 30 years, this figure for Lufthansa is slightly more than 10 years and for Turkish Airline only 6 years.
Top three Iranian Airliners are Iran Air (Homa), Mahan Air and Iran Aseman Airlines, who try to offer the best service that their equipment permit.

Source: Ministry of Roads and Urban Development

Would Foreigners Buy Esfahan Steel Company?

Esfahan Steel Company tries to sell 73% of its share in Iran Farabourse, an over-the-counter market in Iran. The initial price for the whole block was set $682 million. No buyer was interest in the offer.
Esfahan Steel Company wants to reach an annual production of 3.2 million tonnes by March 2017, i.e. 0.8 million tonnes more than the current capacity.
While no-one has shown interest in the market, the company says that it has offers from Luxembourger and South Korean companies.
However, taking into account the $1.73 billion debt of the company, makes the claim a bit questionable.

Source: Iran Farabourse, Esfahan Steel Company