Iran Air confirmed the order for this aircraft, the third of its type, on June 18, 1974. It was the eighteenth Boeing 747SP to be built. Rolled out of the Boeing plant at Everett on April 27, 1977 it was powered by Pratt & Whitney JT9D-7F engines. Entered onto the Iranian Aircraft Register as EP-IAC it flew for the first time on May 16, 1977.

Accepted by Iran Air at Everett (Paine Field) on May 27, 1977 the aircraft entered service shortly thereafter on the airline's European routes configured to seat 22 Business Class and 283 Economy Class passengers. The aircraft was originally named 'Khuzestan' but by 1982 this had been changed to 'Fars'.

The aircraft was badly damaged when it made an emergency landing at Beijing Airport, China on January 15, 2004 following a hydraulic failure. The nose gear did not extend and the nose was badly scraped during the landing roll. It was observed on March 15, 2004 back on its undercarriage and being prepared for ferrying back to Tehran which occurred on June 01, 2004.

Being damaged it was withdrawn from use and parked in the Iran Air maintenance facility where it was used for parts, having flown 12,140 hours with 3,597 cycles. It was reported in February 2006 that Iran Air were still waiting for official determination that the aircraft would be either written off or repaired to enable it to return to service. It was observed at Tehran undergoing a 'D' check on September 15, 2008.

On March 14, 2010 EP-IAC was rolled out at Tehran in an all-white livery and named 'Persian Gulf'. It was returned to service after spending 5 years in storage. This aircraft has now been retired from service and confirmation of its fate is still pending.