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

In a controversial incident on Monday, Turkish bailiffs seized a Caspian Airlines Boeing 737 at Istanbul airport as it was preparing to depart for Iran. This move was in response to a €3 million debt owed to aviation representation and supervision company ACM Temsil Gözetim, the airline's creditor. The evacuation of passengers and crew ensued prior to the aircraft being returned to the terminal.

Passengers were informed of the seizure by Iranian state broadcaster IRIB, though official confirmation from Turkish authorities has not been provided.

The seizure of the plane occurred a week following the US imposing secondary sanctions on Iran's aviation sector, which led to airlines and airports canceling flights to and from Iran. These secondary sanctions, imposed by the US Treasury in early September as part of Operation Economic Outcast, targeted 27 Iranian airlines and nine associated service providers.

The sanctions aim to limit foreign access to the US dollar system for entities that continue to service Iranian carriers. As a result, Turkish Airlines, AJet, and Pegasus have canceled their flights to and from Iran, although Iranian airlines are permitted to operate between Turkey and Iran.

The financial strain on Iranian airlines has been exacerbated by decades of financial sanctions and difficulties in obtaining aircraft parts. Earlier this month, Iran Air CEO Taher Abdolahi admitted that the national airliner carried a debt of 430 trillion rials, equivalent to over $250 million. Abdolahi attributed the financial pressure to unpaid taxes, frozen accounts, debts to parts suppliers, and outstanding payments for flights operated in previous years.

Consequently, around 20 aircraft have been grounded, and the airline is now prioritizing the acquisition of new aircraft.