Iranian Airlines plane seized by Turkey over millions in unpaid debts, stranding Iranian passengers

Notably, the seizure came a week after the US imposed secondary sanctions on Iran’s aviation sector, prompting airports and airlines across the region to cancel flights to and from Iran for the fores

Turkish bailiffs seized a Caspian Airlines Boeing 737 at Istanbul airport on Monday as it was boarded with passengers and preparing to depart for Iran, following a court order to enforce a €3 million debt, according to Iranian and Turkish reports.

Bailiffs and lawyers representing the aviation representation and supervision company ACM Temsil Gözetim, the airline's creditor, served a seizure order before the plane could take off, according to Anadolu Agency. Passengers and crew were evacuated from the aircraft before it was returned to the terminal.

Though unconfirmed by Turkish officials, the Iranian state broadcaster IRIB reported that the plane was returned on Tuesday.

Notably, the seizure came a week after the US imposed secondary sanctions on Iran’s aviation sector, prompting airports and airlines across the region to cancel flights to and from Iran for the foreseeable future.

Secondary sanctions caused rapid contraction of Iranian aviation

The US Treasury sanctioned 27 Iranian airlines and nine associated service providers in early September as part of  Operation Economic Outcast, warning that foreign airports, fuel suppliers, ground handlers and ticketing companies that continued to service Iranian carriers could also face sanctions and risk losing access to the US dollar system. The secondary sanctions have triggered a rapid contraction in Iranian aviation internationally.

Turkish Airlines, AJet, and Pegasus have canceled flights to and from Iran, although Iranian airlines have been allowed to continue operating between Turkey and Iran.

Iranian carriers have often struggled to meet their financial obligations and maintain their fleets due to decades of financial sanctions and difficulties receiving aircraft parts.

Earlier this month, according to Khabar Online, the CEO of the Islamic Republic of Iran’s national airliner Iran Air, Taher Abdolahi, admitted the airline had a debt amounting to 430 trillion rials (More than USD $250 million).

Abdolahi said that unpaid taxes, the freezing of some accounts, debts to parts suppliers, and outstanding payments for flights operated in previous years had placed significant financial pressure on the airline. As a result of the financial shortfall, he said that around 20 aircraft were grounded, and the airline was now focused on purchasing new aircraft.