The private airline would benefit from the deregulation of the Iranian aviation sector and the introduction of open skies agreements
The biggest challenge facing Mahan Air is that of safety. The airline was briefly banned from flying to EU countries for this reason and its fleet continues to be a major concern. Prevented from trading internationally, Iran’s airlines are forced to buy used aircraft from other regional airlines or Russian-made aircraft that have dubious safety records.
Mahan Air | |
---|---|
Passenger traffic | |
2006 | 1,735,000 |
2007 | 2,348,000 |
2008 | 2,479,000 |
2009 | 2,601,033 |
Source: Mahan Air |
Mahan Air total seats | |
---|---|
2006 | 3,276 |
2007 | 5,074 |
2008 | 5,219 |
2009 | 6,135 |
2010 | 7,601 |
Source: Mahan Air |
Mahan Air total fleet | |
---|---|
2006 | 19 |
2007 | 19 |
2008 | 20 |
2009 | 24 |
2010 | 32 |
Source: Mahan Air |
On top of this, a fresh wave of UN sanctions restricting the export of gas and petroleum products to Iran imposed in June are now limiting the airline’s ability to access fuel.
UK/Dutch Shell Group said in July that it would not be renewing its contracts to supply jet fuel to national carrier Iranian Airlines. Mahan Air is also currently unable to refuel at Birmingham International airport in the UK because the only two companies supplying fuel at the airport are American.
As a private airline, Mahan Air would benefit greatly from the deregulation of the Iranian aviation sector and the introduction of open skies agreements, which would allow Iranian airlines to compete with their regional counterparts. At present, the government favours the state-owned airlines and prevents private carriers from flying to prime destinations. Deregulation was high on the agenda of the previous administration, but it now seems forgotten.
Furthermore political relations with the other Gulf states remain fraught suggesting an open skies deal is unlikely to emerge any time soon. Mahan Air’s inability to invest in new aircraft, to access fuel and the lack of competition could constrain its growth plans in the short to medium term, despite the determination of its leadership.
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