Turbulent Takeoff—Hard Landing: State-Airline Relations and the Challenges of Early Commercial Aviation in Iran, 1923–1932

This article studies the rise and fall of commercial aviation in Iran, then known as Persia, between 1923 and 1932. Two airlines, the German Junkers Luftverkehr AG and Britain’s Imperial Airways, invested significant time and effort in developing air routes but eventually failed due to financial hardship and political intransigence. Exploring this erratic development, the article has two aims: first, to investigate the entangled history of two of the world’s oldest airlines and the challenges they navigated; and second, to assess the fraught relationship between state and business interests. The German and British airlines were rivals in Iran, but they became partly dependent on each other. Both airlines suffered from the global political dynamics of the interwar period while Junkers, in particular, also struggled financially. Meanwhile, the Iranian state had yet to decide whether to view the new technology with enthusiasm or concern. Its ambivalent and reluctant reaction had profound effects on the trajectories of Junkers and Imperial Airways. Assessing the capability of a nascent airline industry to develop viable business models outside of Europe, the article also serves as a case study revealing the headwinds airlines encountered in the earliest phase of commercial aviation.