Commercial Aviation
Mahan Air Expands Fleet with Boeing 777s Despite Sanctions Enforcement Gaps
Mahan Air acquires five Boeing 777s via complex transfers, revealing weaknesses in international sanctions enforcement and aviation oversight.
In a world where international sanctions are designed to isolate and deter, Iran’s Mahan Air has demonstrated a persistent ability to adapt and navigate around restrictions. The recent acquisition of five Boeing 777-200ER aircraft, previously operated by Singapore Airlines and NokScoot, highlights a complex and opaque process often used to maintain and modernize Iran’s commercial aviation fleet despite heavy sanctions imposed by the United States and the European Union.
These aircraft transfers are not merely about fleet expansion, they represent a broader geopolitical strategy. Mahan Air, which has been under U.S. sanctions since 2011 for alleged ties to the Islamic Revolutionary Guard Corps (IRGC), continues to operate internationally, often through indirect and covert means. The airline’s actions raise critical questions about the effectiveness of sanctions enforcement and the global mechanisms that allow such transfers to occur.
This article delves into the background of Mahan Air’s sanctions, the detailed pathway through which the Boeing 777s were acquired, expert insights on the implications of such transactions, and the broader context of Iran’s aviation strategy under sanctions pressure.
Mahan Air is Iran’s largest private airline, founded in 1991 and based in Tehran. It has been on the U.S. Treasury’s sanctions list since 2011, accused of transporting weapons, personnel, and funds on behalf of the IRGC-Qods Force. These allegations have led to strict prohibitions on the airline’s access to Western-manufactured aircraft, parts, and services.
Despite these restrictions, Mahan Air has developed a reputation for circumventing sanctions through a network of third-party intermediaries and shell companies. Previous acquisitions of aircraft like the Airbus A340s and older Boeing jets often involved re-registration in countries with limited sanctions enforcement, such as Cambodia or Madagascar.
This pattern of evasion is not new. Aviation analysts have documented several instances where Iranian carriers have used complex transfer routes, ownership structures, and technical workarounds to maintain operational fleets. The Boeing 777 case represents the latest and perhaps most sophisticated example of this ongoing strategy.
The five Boeing 777-200ER aircraft in question were originally delivered to Singapore Airlines in the late 1990s and later transferred to NokScoot, a now-defunct Thai low-cost carrier. After NokScoot ceased operations in 2020, the aircraft were stored in Alice Springs, Australia, a common site for long-term aircraft storage due to its dry climate.
In 2023, a U.S.-based company named Ion Aviation acquired the aircraft and registered them under U.S. tail numbers. This move initially raised few red flags, as the aircraft were ostensibly being repositioned for resale or refurbishment. However, the subsequent movements of the aircraft suggest a different intent. From Australia, the aircraft were flown to Lanzhou, China, and then to Siem Reap, Cambodia. Maintenance work was reportedly conducted in Jakarta, Indonesia. On July 15, 2025, the aircraft departed Cambodia, disabled their transponders over Afghanistan, a known tactic to avoid radar detection, and later reappeared in Iranian airspace with new registrations issued by Madagascar.
“Tracking secondary market transactions often reveals these deals early, but enforcement remains weak.” — Sean M. Diamond, Aviation Analyst
The Boeing 777-200ERs, though over two decades old, still offer operational advantages over Mahan Air’s older Airbus A340s. The aircraft are equipped with Rolls-Royce Trent 884 engines, which share maintenance compatibility with Iran Air’s Airbus A330s, easing integration into existing infrastructure.
Financially, the acquisition of used 777s is significantly more cost-effective than purchasing new aircraft. Estimates suggest these aircraft were acquired for between $7 million and $20 million each, compared to the $410–442 million price tag for a new Boeing 777X. While refurbishment costs can reach up to $20 million per aircraft, the overall investment remains substantially lower.
This cost-conscious strategy aligns with Iran’s broader approach to aviation under sanctions: prioritize second-hand aircraft that are easier to acquire through indirect channels, and invest in domestic maintenance and refurbishment capabilities to keep them operational.
The international community, particularly the U.S. and EU, has expressed concern over Mahan Air’s continued ability to expand its fleet despite existing sanctions. The U.S. Treasury has reiterated its commitment to enforcing sanctions, but experts argue that enforcement mechanisms remain porous, especially when aircraft are funneled through multiple jurisdictions.
Countries like Madagascar and Cambodia have been identified as weak links in the sanctions chain. Their aviation authorities have issued registrations and facilitated transits without thorough scrutiny, enabling sanctioned entities to operate with a veneer of legality. These gaps are further exploited through the use of shell companies and complex ownership structures.
The EU recently imposed additional sanctions on Mahan Air, citing its role in transporting military equipment to Russia. These developments underscore the dual-use nature of Mahan Air’s operations, where civilian aircraft may also serve military or paramilitary functions.
Experts highlight the need for more proactive monitoring of secondary aircraft markets. Sean M. Diamond notes that while transactions are traceable, the lack of timely enforcement allows aircraft to change hands and jurisdictions before authorities can intervene. The use of U.S.-based entities like Ion Aviation further complicates the picture, revealing systemic vulnerabilities in compliance frameworks. EU officials have called for tighter coordination between aviation authorities and sanctions enforcement bodies. They argue that without a unified global approach, sanctioned entities will continue to exploit regulatory discrepancies to maintain and expand their fleets.
The broader implication is a weakening of the deterrent effect of sanctions. If entities like Mahan Air can consistently bypass restrictions, it may embolden other actors to adopt similar tactics, undermining the credibility of international sanctions regimes.
The case of Mahan Air’s acquisition of former Singapore Airlines Boeing 777s illustrates the complex interplay between aviation commerce, international sanctions, and geopolitical strategy. Despite being under stringent U.S. and EU sanctions, Mahan Air has managed to expand its fleet through a carefully orchestrated network of intermediaries, jurisdictions, and technical maneuvers.
This development not only raises questions about the effectiveness of current sanctions enforcement but also highlights the need for greater international collaboration to close loopholes. As Iran continues to modernize its aviation sector under constraints, the global community must reassess its tools and strategies to ensure compliance and uphold the integrity of sanctions frameworks.
How did Mahan Air acquire the Boeing 777s despite sanctions? What are the implications of this acquisition? Why are older aircraft like the 777-200ER attractive to Mahan Air? What is the global response to such actions?
Introduction: Sanctions, Aviation, and Strategic Maneuvers
Background: Sanctions and Mahan Air’s History of Evasion
Aircraft Origin and Ownership Trail
Technical and Financial Considerations
Global Reactions and Enforcement Gaps
Expert Analysis and Policy Implications
Conclusion
FAQ
Through a series of indirect transactions involving U.S.-based and international intermediaries, and by re-registering the aircraft in countries with limited enforcement of sanctions.
It demonstrates weaknesses in international sanctions enforcement and suggests that sanctioned entities can still access Western aircraft through complex channels.
They offer a cost-effective solution for long-haul operations and are easier to integrate into existing infrastructure compared to newer, more expensive models.
The U.S. and EU have reiterated their sanctions, but experts argue that enforcement remains inconsistent, allowing such transfers to occur.Sources
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