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Aviation History
1965
1965 - 0083.PDF
One of Iran Air's DC-6s. The airline's livery is a smart blue and white Airline Profile / NUMBER TWENTY-TWO IN THE SERIES IRAN NATIONAL AIRLINES By Daryl May IN an age when airlines are hastily buying jets and nationalisticallydisplaying them around the world, I was gratified to hearthese words: "The direction of our growth is based on the nation's internal needs . . . We have no desire simply to show the flag and cross oceans." Speaking was Maj-Gen Ali Khademi, managing director of Iran Air. And his words underline a no-nonsense approach to airline management that speaks of public service before profit, and profit before prestige. Such an approach to running an airline is no less patriotic because it is sensible; in fact, Iran Air's plans are closely in accord with national policy. Iran's Third Plan,involving some £l,500m between now and 1967, will raise per capita income and gross national product a lofty 27 per cent. "Within three years," says Khademi, speaking as a man with some knowledge of aviation's place in an undeveloped community, "the country will need us as never before." Iran's population is 22m, spread thinly over an area approxi- mately that of the Common Market countries together. About one-third is desert and another third forest and mountain, surely ideal showgrounds for the benefits of aviation. But the nation's per capita income is about £65 per year; and the airfields are high, indifferently equipped, hot in summer and sometimes icy in winter. The airline may find Iran a showground for public service; but in the showground can it show a profit ? In recent years Iran Air has shown a profit, but to achieve this has demanded some negative yet wholly necessary reorganization— the airline had sunk into a morass engendered by the complexity of its administration. Originally 50 per cent belonged to the Government, 20 per cent each to Persian Air Services and Iranian Airways, and 10 psr cent to the public; by early 1962, when Persian Air Services stopped operating, the then Iran Air had a debt of £500,000, interest owing of £155,000, and was minus 33 per cent of its stock. Debtor was the American finance corporation FATD, which in 1957 had loaned the airline £900,000. By April 1963, FATD had agreed to cancel the accrued interest and interest for the next three years, reduce the principal of the loan, and give back £46,000 of the stock. This is, of course, the bare bones of a very fleshy story: it suffices to Footnote; Derivation of Iran Air's eagle in profile (seen in the heading)is twofold: figures of this sort are found in the Apadana Palace at msepolis, and similar designs are found engraved on vessels of theAchemenian period. say, however, that Iran Air benefited by £400,000 and became wholly Government-owned. In the year following the change of ownership scheduled-service passengers increased by 31 per cent to 218,000, compared with the previous year's increase of 18 per cent. A stimulus to account for the large traffic-rise was a 1963 winter fare discount of 25 per cent. Maj-Gen Khademi, pointing to a passengers versus month-of-the- year graph, said: "At first the winter trough was much less marked. Then we had Iran's worst-ever winter ... icy runways; we had to cancel flight after flight." So winter traffic resumed its usual down- ward trend, but not before the traffic increase had encouraged the airline to continue to offer winter discounts—though perhaps not 25 per cent again—for four months in 1964-65. Worst-ever winters do not help boost revenue, and a three-month suspension of the Kuwait service was equally unfortunate. The 31 per cent traffic increase generated only a 12 per cent revenue rise —sufficient, however, to provide a profit even after wage increases to employees. The off-season discount, together with proposed reduced night fares and coach flights, is intended to increase aircraft utilization, which is at present about l,700hr a year for the airline's Viscounts and DC-6s and rather less for the DC-3s. Low utilization is blamed
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