Saturday, June 18, 2016

Iran to challenge Gulf states as aviation hub

On 2016 15th July, news emerged from Tehran, the Iran Air has reportedly reached an agreement with Boeing for 100 airliners. In January, Iran Air and Airbus agreed to a historic deal for 118 airliners with a list value topping $25 billion.

With nearly 220 planes on order, Iran Air and its management are looking to return the once world-class carrier to its previous luster. At this rate, Emirates, Etihad, and Qatar Airways may have a new regional power with which to contend.

Geographically Iran is better positioned than Gulf states, and further better than Turkey's Istanbul as a hub for most important routs, for example Europe to South and South East Asia, Europe to North East Asia, and as a gate way of America East Coast.

Similarly to Gulf states, Iran aviation industries has access to cheaper jet fuel, outside the reach of Turkey.

An additional advantage of Iran vs the Gulf states is her large domestic population, 80 million vs 8 million of UAE.

Tehran in Winter

A further strength against Gulf states is, Iran is infinitely more interesting in culture and landscape. The Gulf states and merely shopping malls on top of deserts.

Many states such as Singapore, Hong Kong, Malaysia and Thailand, strive to be aviation hub, but they are in disadvantage geographically, while the former three are further disadvantaged in term of domestic population.

Iran has all the plus and none of the minus compared to all others. Her rise will be inevitable.

Tehran in Winter

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