Does the Passenger Section of Payam Airport Have Economic Justification?

With the opening of the passenger section of Payam International Airport in Alborz Province, this airport, which previously had a cargo function, has been added to the list of passenger airports in Iran. However, given the increase in ticket prices and the decrease in the travel capacity of Iranians, can we hope for the profitability of this airport? Iranian media reported the opening of the passenger section of Payam International Airport on the afternoon of September 14. The Payam Aviation Services Company began its activities in 1990 under the title of Air Services Center to provide air services, transportation, cargo distribution, postal goods, and helicopter services, supporting telecommunications and postal facilities in Iran, following an agreement between the Iranian Telecommunications Company and the Iranian Post Company. Subsequently, according to a government decree in July 2003, 3,600 hectares of Payam Airport's land were designated as a special economic zone. According to Fars news agency, the first flight from Payam Airport in Karaj was a direct flight from Mashhad. The arrival of a Boeing MD from Mashhad marked the first public flight to this airport. The commencement of operations at this airport, like many projects in Iran, has faced numerous delays. The last announcement indicated that flight routes between Karaj and other cities in Iran were to be established before the end of 2017. In June 2017, the permit for the airport to operate passenger flights was issued. Saeed Zarandi, the CEO of Payam International Airport, told ISNA that "the transition to passenger operations at Payam International Airport has cost more than 45 billion tomans so far. For the airport to operate as a passenger terminal, 280 standards and changes were issued, most of which have been implemented." Currently, two flights a week are operated by Taban Airlines on the Mashhad-Karaj-Mashhad route on Wednesdays and Fridays. Flights to Isfahan, Kish, and Shiraz are also among the initial destinations from Payam Airport. According to airport officials, by the end of this year, six flights per day will be established at this airport by various airlines. Currently, the presence of three airlines, Zagros, Ata, and Kish Air, at Payam has been confirmed. Payam Airport has a runway that is 4,200 meters long and 60 meters wide. Saeed Zarandi mentioned the runway as one of its positive aspects and emphasized that "due to its cargo nature, it benefits from a very robust runway and has the capacity to accommodate wide-body aircraft." The unofficial opening of the passenger section of Payam Airport in Alborz Province took place while many sections of the airport are still not ready for operation. About two months ago, Ali Babaei Rabiei, the director of the airport's planning, development, and construction office, announced that "there is an open parking lot at this airport, and the contract for it has just been signed. The construction of the hangar is also in the foundation and structural phase, with the open parking lot having 20% physical progress and the hangar 25%." Following the excessive increase in the exchange rate, the price of airline tickets in Iran has also seen a significant jump. After the removal of the allocation of 4,200 tomans to airlines, ticket prices increased. Each passenger must pay more than 500,000 tomans for a round trip domestic flight, except in special cases; this will likely lead to a decrease in demand and a significant drop in the number of passengers. Recently, ISNA reported that Mehrabad Airport, as the main airport for domestic flights in Iran, has been quieter than ever despite the summer holidays. On the other hand, Seyyed Hassan Alavi, a member of the Iranian Parliament's commission, stated that "only five airports in the country are profitable, and with the increase in ticket prices, the number of passengers has significantly decreased." One of the main reasons for launching the passenger section of Payam International Airport is to assist Mehrabad Airport in Tehran and reduce the burden of flights in Tehran. Previously, it was planned to establish domestic flight operations at Imam Khomeini International Airport as Iran's main airport, a promise that is still far from being realized.