Iran Air Reveals Expansion Plans

Last week Iran Air bought 118 aircraft from Airbus, 21 A320ceo, 24 A320neo, 27 A330, 18 A330-900neo, 16 A350-1000s and 12 A380s. The CEO of Iran Air, Farhad Parvaresh, promises that new aircraft, means new destinations and increased frequency.

The accord last week between Iran Air and Airbus is set to be signed until 20 February 2016. When signed, Iran Air will receive the 118 aircraft within a 7 year period, starting with delivery of 5-8 aircraft in 2016. Aditionally, 20 (+20 options) ATR72-600s are being delivered in 2017, but 2-4 are ready for delivery in 2016.

The 118 Airbus aircraft are 85% financed by Airbus and 15% by Iran Air in a lease deal.

The unpredicted move by Iran Air to buy 12 A380s can be seen as an unmotivated move by many. Yet Iran, Iran Air and Airbus praise the aircraft as ideal for the Iranian market.

“Today’s announcement is a first step towards restoring the prestige of the civil aviation sector in the region”, Farhad Parvaresh, Iran Air‘s CEO (Irna)

The Iran Air CEO marks what imporance the A380s can have when the Iranian airports can handle it. The number of the Iranian diaspora is significant and the lack of aircraft has prevented Iran Air to serve all the needed destionations, which has resulted in a loss of revenues of $5m to foreign airlines, yearly. The airline escpially wants to enter the American and Canadian market, if the authorities accept.

Farhad Parvaresh is straight on the matter that new aircraft results in new destinations to come. The 5-8 Airbus aircraft, including both wide- and narrowbodies, which will be delivered during 2016 is the starting shot for Iran Air’s expansion. The first destinations that will feel Iran Air’s expansion is Amsterdam and Frankfurt which will see five, instead of three weekly flights each this year. New destinations such as Seoul and Tokyo will be launched as soon as the new aircraft arrive. Tokyo has previously been operated but due to the absence of aircraft it could not continue. The expansion will also take place by new codeshare agreements with other airlines. It is unclear whether Iran Air will join airline alliances.

 

Photo: Ministry of Roads and Transportation