Airline battle brews in Gulf as Iran eyes regional hub role

An economic battle is likely for dominance of the skies over the Gulf after Iran decided to invest US$27n in an airline fleet capable of taking on the region's supercarriers. By ordering dozens of long-distance European jets last month after the lifting of sanctions, Iran is positioning Tehran as a potential long-term transit point between East and West to rival regional hubs such as Dubai, air officials and analysts say. The move is underscored by Tehran's choice of Airbus A380, which sends a political warning to Iran's neighbours not to ignore the Islamic Republic's emergence from isolation. The investment also points to a strategy to take part in the globalisation of the transport industry alongside Gulf rivals, even though the social and economic challenges of building a world-class hub are formidable for Iran. <br/>