Iran's aviation industry: stagnant, worn out, and on the verge of bankruptcy

The latest assessments show that the average age of Iran's aircraft fleet is "over 20 years." The high age of the aircraft fleet is mainly due to the inability of the Islamic Republic's authorities to purchase new aircraft from reputable global manufacturers such as the United States and France.

In fact, a large part of Iran's air fleet is under US sanctions, as Washington says the Islamic Republic has used this fleet, particularly Mahan Airlines, to transport weapons to countries such as Syria.

The majority of air accidents in Iran are caused by the age of the airline fleet, which has to transport millions of people within the country every year. However, studies show that most domestic airlines are loss-making and, despite government subsidies and cheaper fuel than foreign companies, are on the verge of bankruptcy, a situation that the CEO of Iran Air recently described as surviving on “artificial respiration.”

• History of the aviation industry in Iran

In 1945, a group of Iranian businessmen launched a company called "Iranian Airways", which initially operated flights between Tehran and Mashhad, and then expanded to the cities of Isfahan, Shiraz, Abadan, Ahvaz, and Bushehr. The company then expanded its flights to Cairo, Beirut, and Baghdad, and made its first flight to Europe a year after its establishment, via Beirut to Paris.

Another airline, Persian Air Service, was launched in Abadan in 1955, initially operating only cargo flights, and then established regular flights to Paris, London, and Brussels. In the winter of 1961, the officials of these two companies merged their companies, and Iran Air was established.

Four years after its founding, Iran Air acquired Boeing 727 jets, becoming one of the most equipped airlines. But Iran Air's golden age came in the 1950s, when a large number of Boeing 727s, 737s, and the expensive 747 were added to the Iran Air fleet. The direct flight from Tehran to New York, the longest non-stop air route, was launched. A contract was even signed to purchase two supersonic Concorde aircraft, which was canceled after the revolution.

In 1976, the national Iranian airline, Homa, was the most profitable and modern airline in the world and, after Qantas, was considered the safest airline in the world.

After the revolution, the number of airlines increased. Currently, there are 18 active airlines and about 18 inactive airlines in Iran.

• Air accidents in Iran

While before the 1978 revolution, there was only one air accident involving Iranian flights, which occurred in 1952, after the revolution, air accidents increased significantly. For example, a Sepahan Air flight from Tehran to Tabas on August 9, 2014, resulted in a technical failure and the plane crashed, killing 38 people.

But these accidents are not just about plane crashes. In many cases, technical malfunctions cause delays or cancellations of flights in Iran. Two years ago, a Tehran-Mahshahr passenger plane skidded off the runway at Mahshahr Airport during landing due to a "technical malfunction."

• Land grabbing industry

According to reports, 50 percent of Iran's air fleet is "grounded."

Alireza Barkhour, vice chairman of the board of directors of the Iranian Airlines Association and CEO of the Islamic Republic of Iran Airlines, said in December of this year that more than half of Iran's planes are grounded "due to a lack of parts, especially engines."

According to him, "More than 170 of the existing aircraft are currently inactive due to a lack of necessary financial resources and restrictions resulting from sanctions to supply the necessary parts."

Five years ago, after the nuclear agreement with world powers and the implementation of the JCPOA, Iran signed a contract with aircraft manufacturers Boeing and Airbus and another European company to purchase 200 passenger planes.

However, according to reports, the signing of the JCPOA resulted in only three Airbus aircraft and 13 Italian-French ATR aircraft entering Iran, and deliveries of other aircraft were halted after the US withdrew from the JCPOA and reimposed sanctions.

It seems that Iran's aviation industry, like many other Iranian industries that have been worn out and grounded due to lack of capital, sanctions, and economic isolation, is a victim of the Islamic Republic's macro policies; policies that have made Iran's economy hostage to its controversial nuclear program.

Source: Voice of America