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Iranian Airline Development 1980-2021

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Iran is famous among aviation enthusiasts for its history of keeping older aircraft flying due to its inability to acquire newer aircraft. This is of course due to the range of sanctions imposed following the Islamic Revolution by the USA and subsequent other international restrictions relating to Iranian activity well outside the scope of this article. In relation to aviation the transportation of both weapons and military personnel using state-owned and private airlines (most recently to Syria as part of the ongoing civil war) has caused further pressure and bans targeting Iranian airlines.
Nonetheless, despite the significant disadvantages that Iran's airlines have faced, the aviation sector in the country has been diverse and successful, whilst safety has not been dramatically impacted by the difficulties involved in finding spares for the elderly aircraft fleet, let alone finding replacement aircraft. Iranian airlines have in fact been incredibly enterprising in finding ways around the restrictions imposed upon them.
After the false dawn of the 2016-2018 period it remains to be seen whether the Biden administration is able to come to terms with Iran, which allow for the dropping of sanctions and for Iranian aviation to blossom after many years of hardship.

The 1980s: Isolation begins
Picture
Michel Gilliand (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
Above: During the 1970s Iran Air was a world leading airline that had a say in the design of types such as the Boeing 747SP
By the late 1970s Iran Air was a major, well respected, safe and fast growing national carrier. Unfortunately the Islamic Revolution of 1979 and the resulting economic sanctions made Iran not only a pariah state but also severely damaged the aspirations of its flag carrier. Although the initial sanctions were lifted in 1981, as part of the Algiers Accords, new sanctions gradually came into force during the 1980s and 1990s effectively cutting off Iranian airlines from access to the outside world in terms of aircraft purchases. Throughout the 1980s Iran's airline scene was limited to 3 major airlines - the flag carrier Iran Air, it's charter subsidiary Iran Airtour Airlines and Iran Aseman Airlines. With the Islamic Revolution only a few years in the past the sanctions imposed on the country had relatively little impact on the operation of the airlines at first. Iran Air continued to receive new Airbus A300s into January 1983 but otherwise the only new aircraft added were a pair of A300-605Rs in 1994, and only then were these allowed as part of the compensation for the US Navy downing of Iran Air Flight 655.
Below: EP-IBB is one of two A300s delivered to Iran Air in 1994 and still in service today
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Alan Wilson from Stilton, Peterborough, Cambs, UK, CC BY-SA 2.0 , via Wikimedia Commons

Below: Iranian Airlines from the 1980s and 1990s
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The 1990s: Liberalisation and Russian Additions
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Perry Hoppe (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
Despite Iran's increasing isolation liberalisation of the aviation scene saw new airlines appear as the 1980s turned into the 1990s. Saha Air Lines was formed by the Iranian Air Force, using ex-Air Force 707s, but the early 90s also saw the creation of new private airlines including Caspian Airlines, Kish Airlines, and most importantly, Mahan Air. Both Caspian and Kish started services with Yakovlev Yak-42Ds acquired via Russian and Ukrainian airlines. Mahan Air, which has grown into Iran's largest airline, started with Tupolev Tu-154s. Tu-154s would become an increasingly important part of the Iranian fleet because they could be acquired from the Russians circumventing sanctions around selling aircraft with US equipment in them to Iran.
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Søren Geertsen (GFDL 1.2 , GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons


The 2000s: Re-equipment & New Blood
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Shahram Sharifi (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
Above: A Zagros Air Tu-154 in 2006 clearly showing its Bashkirian Air Lines ancestry by wearing their entire scheme with just Zagros titles.
The early 2000s were a time of much activity in Iranian aviation as multiple new airlines were formed. Several of these still used old Russian equipment in the form of Tu-154s, however the type was gaining a poor image. The crash of a Caspian Airlines example on July 15, 2009 proved the last straw and the type was banned from February 20, 2010. At that time there were still 22 Tu-154s in service in Iran (13 with Iran Airtours). New equipment was still impossible to acquire but Iranian airlines became adept at acquiring 'new' second-hand equipment via a variety of means (see later section on sanctions evasion). The most popular types acquired were Airbus A300s, Fokker 100s and McDonnell Douglas MD-80s, but there was also a sprinkling of Boeing 737-300/400/500s and even Airbus A320s.
Below: A typical 2009 lineup at Tehran's Mehrabad Airport features Iran Air and Mahan Air A300s, Iran Airtour and Taban Air Tu-154s and a Zagros Airways MD-80.
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Shahram Sharifi (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
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Amin Nouabahr, CC BY-SA 4.0 , via Wikimedia Commons
Above: The Fokker 100 has seen service with many Iranian airlines including Karun Airlines (formerly Iranian Naft Airlines)


Below: New Iranian Airlines formed since 2000
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2010s: Growth & More Liberalisation
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There has certainly been plenty of demand for air travel from Iranians. In the ten years between 2006 and 2016 passenger traffic doubled at Iranian airports and yet despite having similar fundamentals to Turkey the Iranian aircraft fleet was only 1/3 the size. The market has also continued to be liberalised by the Civil Aviation Organisation of Iran. By December 2015 170 domestic routes were deregulated to create more competition between companies, and these routes included important services to the popular Kish and Qeshm islands. The remaining 87 routes were deregulated by the end of March 2016.
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Above: EP-TBF is a 1997 build MD-88 that came to Taban Airlines via the Ukrainian intermediary Bukovyna Aviation Enterprise
Below: MD-80s have become popular as Tu-154 replacements in Iran as these Kish and Caspian examples show at Mashhad in 2014
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Mohammadreza Farhadi Aref, CC BY-SA 4.0 , via Wikimedia Commons
Most of the new startup airlines have seemingly thrived despite their operational limitations, although a couple have folded. Sepahan Airlines was an internal division of the Iran Aircraft Manufacturing Industrial company (HESA) and operated 6 HESA assembled Antonov An-140 turboprops. Sadly the August, 10 2014 crash of one of them, which killed 39 passengers, led to the grounding of all IrAn-140s and the closure of the airline.
Below: One of the 6 HESA / Sepahan Airlines IrAn-140-100s. Landing at Dubai in January 2013
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Konstantin von Wedelstaedt (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
Atrak Air was a 2014 startup that at its height used a trio of A320s and during the lull in sanctions was discussing the acquisition of new equipment. By 2018 its fleet was down to just 1 A320 and it failed soon afterwards possibly partly due to the coming re-establishment of sanctions.
Below: Atrak Air's EP-TTA was a 1992 build aircraft originally delivered to Dragonair. It came onto the Iranian register through the Ukrainian Khors Aircompany, initially with Zagros Air. Following Atrak's closure it is now with Iran Airtour Airlines.
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Konstantin von Wedelstaedt (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons


The Iranian Fleet in mid-2016
CAPA's analysis from 2016 gives an interesting view of the Iranian fleet at the time. Actual fleet totals are difficult due to the inter-leasing of aircraft and issues of serviceability so these figures should be considered as estimates.
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Clearly Mahan, Iran Air and Iran Aseman dominated with 56% of domestic (spread fairly evenly between them) and 78% of international traffic carried by Iranian airlines. Mahan and Iran Air also dominated the international traffic with nearly 70% of that 78%, but as part of the international market as a whole foreign airlines took 40% of the pie.


2016-2018: False Dawn
On January 16, 2016, many months ahead of schedule, Iran satisfied the conditions of the JCPOA Accord, reached the previous July, to reduce its nuclear capabilities. This allowed for the removal and rollback of a wide range of sanctions against Iran, including those that stopped the sale of new passenger airliners to most Iranian carriers plus services associated with warranty, maintenance, repair and safety related inspections. The result was Western airframe manufacturers were quick to court Iranian airlines and on December 11, 2016 orders were signed for 80 Boeing jets, followed swiftly on December 22 for 10 Airbus aircraft. 
Picture
aeroprints.com, CC BY-SA 3.0 , via Wikimedia Commons
Above: Iran Aseman operated the world's last passenger 727 in 2019 and was keen to upgrade to 737 MAXs
The orders covered the majority of both Boeing and Airbuses jet portfolio including the 737, 777, A320, A330, A350 and A380 families. In April 2017 Boeing announced a further deal with Iran Aseman for 30 737 MAX aircraft. In June Airbus signed a MOU with Zagros Airlines for 20 A320neo and 8 A330neos. As well as jets ATR gained orders for 20 of its ATR turboprops.
Below: Zagros Airlines was unable to acquire new Airbuses but has still managed to acquire an impressive fleet of A319/20/21s as well as MD-80s. EP-ZAT typically came via Ukraine and is a positively young 1999 build frame originally delivered to Alitalia.
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Sadly the failure of the Democrats to win the US election and the inauguration of a Republican Presidency under that imbecile Trump saw the quick unravelling of the JCPOA Accords. With the signaling of US withdrawal from the agreement in May 2018 and the imposition of new sanctions from August the Iranian airlines found themselves back in limbo. Of the massive orders made in 2016 and 2017 only 3 Airbuses (1 A321 and 2 A330s) plus 12 ATR-72s were actually delivered.
Below: EP-IFA was the first new aircraft delivered to Iran Air since 1994 and was the only A321 delivered out of the 2016 order
Picture
Anna Zvereva from Tallinn, Estonia, CC BY-SA 2.0 , via Wikimedia Commons


Airline Blacklisting & Sanction Evasions
One airline that was not inconvenienced more than usual by the reinstatement of sanctions was Mahan Air. The carrier had been blacklisted since 2011 for providing financial, material and technological support to the elite Qods Force of the Iranian Islamic Revolutionary Guard. Basically Mahan Air flights had been used to transport weapons and personnel for Hezbollah. This blacklisting of Mahan Air has meant the carrier has had to work hard to evade US sanctions.  Certainly Mahan Air's operations do not seem to have been widely compromised over the years.
Below: Mahan has operated 20 A310s over the years with 10 still in service. F-OJHI is one of the latter despite being built for Turkish Airlines in 1990.
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Andre Wadman (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
This has taken many forms but one avenue is to incorporate front businesses in other countries as well as find willing international partner organisations. Both have been effective ways to funnel new and refurbished parts and even full aircraft. Dubai has proven particularly useful as a sanctions evasion channel as illustrated by the sanctioning of two Dubai free zone establishments in February 2014 by the Office of Foreign Assets Control (OFAC). One of these, Blue Sky Aviation, was involved in the rather brazen delivery of a trio of Boeing 747-400s to Mahan Air. Prior to that two Ukrainian airlines were involved in the lease transfer of airliners to Iran Air and Mahan Air. In the case of Bukovnya Airlines it was MD-80s and for UM Air it was Avro RJ100s. By May 2013 the two airlines had over 25 aircraft registered in Iran.
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Shahram Sharifi (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
Above: This Kyrgzstan registered 1992 BAE 146-300 has since taken up EP-MOB
Below: the acquisition of 3 ex-United 747-422s via Blue Sky Aviation was highly controversial, although none saw more than 2-3 years service with Mahan aside from this frame EP-MNB, which was returned to service in September 2019
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Konstantin von Wedelstaedt (GFDL 1.2 or GFDL 1.2 ), via Wikimedia Commons
Even so, Mahan Air has in recent years come under greater scrutiny with for example France stopping the four times weekly Paris service in April 2019. Mahan Air was still operating to Milan and Barcelona however and its almost daily flights to Damascus, it is heavily involved with supporting the Bashir government in its Civil war, continued on as usual. Mahan Air is not the only airline that remained under a cloud even during the thaw in relations. Caspian Air, Meraj Air and the cargo airline Pouya Air were all designated in August 2014 as blacklisted companies.
Below: Meraj Airlines operates this A300 wonderfully painted with the Asiatic Cheetah. It also has close ties to the Iranian military and has operated flights in support of military operations to Syria.
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2019-2021: Decline and Covid
The re-establishment of sanctions by the USA not only stopped the delivery of new aircraft but also once again cut off Iranian airlines legal access to parts and technical services. Some airports even have begun to refuse to refuel Iranian aircraft. The US Treasury Department began to focus more heavily on individual aircraft, especially those leased, and stopping them from travelling abroad for maintenance. Iran had managed pre-Covid to keep its domestic flight levels above pre-2015 levels although it was clear that 2018's traffic was significantly down on the good years of 2016-17. ​
Below: Although looking beautiful here in 2018 this 1996 build ATA Airlines MD-83 EP-TAQ is getting very old.
Picture
DARA ZARBAF from Tehran, Iran, CC BY-SA 4.0 , via Wikimedia Commons
Iran has been forced to return to a "resistance economy" model but the Iranian airline fleet continues to age rapidly with an average fleet age of 23 years. By mid-2019 nearly half of the 300 or so aircraft owned by Iranian airlines were out of service due to lack of spares. With sanctions stopping the purchase of any new aircraft with more than 10% US parts even the Sukhoi SSJ100 Superjet is unobtainable. It is an impressive accolade that despite these massive operational issues that safety has not declined and in fact has even improved.
Below: Sepehran Airlines is a relatively new operator with a small fleet of 737 classics including EP-FSI. Originally built in 1999 for easyJet it is leased from GECAS via Indonesia. flyPersia is also a newcomer operating 737s.
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Iran has been particularly badly hit by the Covid pandemic and the impact on Iranian airlines has been severe. Even Iran Air itself has been struggling. In April 2021 the long expected privatisation of the flag carrier has been cancelled due to its ongoing financial problems. In April the transport minister Mohammad Eslami said:
"IranAir is one of our national assets and has been on the path to privatisation for several years, but because the conditions were not ready, after gaining approval from the government we took it off the privatisation list. This company has been up for privatisation for several years. However, the situation is not ripe for such a divestment, because what has been taking place there could have, in practice, harmed IranAir."
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Above: EP-PAC is a 2001 build CRJ delivered new to Air Dolomiti and now one of 3 with Iranian startup Pars Air
Undoubtedly Iran Air will survive and Covid hasn't stopped new entrant airlines from starting service - the most recent being Shiraz based Pars Air operating a trio of CRJ-200s. Iran has also begun to revive some of the lost 2016 aircraft orders now that reconciliation is in the air with talks to revive the 2015 nuclear agreement. Whether this can happen and the fate of Iranian aviation is to a large degree outside of its hands and at the whim of both the Iranian and US governments. Whatever happens Iranian airlines have shown that they have the staying power to survive any adversity.


References

Tayfareh - Iranian Civil Aircraft Blog
Dec 2015. Airfare Deregulation Takes Effect. Financial Tribune
Jun 2016. Iran becomes potentially a major aviation force. CAPA
​Dec 2016. Iran Air and Airbus seal historic aircraft order. Airbus.com
Aug 2018. Iran Air gets 5 more ATR Regional planes before sanctions. Reuters
​Apr 2019. How Sanctions Are Affecting Iran's Airline Industry. The Washington Institute
Dec 2019. Smuggling in plain sight: How foreign businesses help Iran violate US sanctions. qz.com
​Apr 2021. Iran tries to Revive $16 Billion Deal for 80 Boeing Jets. Forbes
May 2021. The Sanctions on Iran's Civil Aviation. Center for Iranian Studies in Ankara


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