AirAsia begins KL links with Tehran

Malaysia's long haul low cost carrier AirAsia X has begun flights to Tehran in a bid to capitalise on a rapidly expanding route

It began twice-weekly scheduled services to Tehran Imam Khomeini International Airport, from Kuala Lumpur last week but expects to expand the frequency to five services a week within the year.

According to Route Development Group the Kuala Lumpur-Tehran sectoris currently served by Iran Air with a four-times weekly basis using B747s and the only other service from Malaysia to Iran is operated by Mahan Air, which flies from Mashad to Kuala Lumpur once a week with A310s. Mahan Air is currently restricted by the existing air service agreement between Malaysia and Iran.

According to IATA over 90,000 O&D passengers flew between Tehran and Kuala Lumpur from May 2009-2010 and Iran Air currently has an 88% share of this market. While Emirates is the leading indirect carrier, capturing 8% of the O&D market via its Dubai hub.

Route Development Company reports that business links between Iran and Malaysia have been strengthened as Iran has reached a deal with a Malaysian firm concerning a $1bn investment to develop Iran's Resalat oilfield in the Gulf. Plans are also underway to link the Stock Exchanges of Iran and Malaysia and Iran has indicated that it is ready to provide opportunities for Malaysian companies to invest in Iran.

Malaysia is a growing holiday destination and there is high demand for flights from the major Iranian tour operators. Malaysia is a very popular holiday spot for Iranians and in return many Malaysians visit Iran for Islamic tourism.