...

Iranian airlines allowed increasing prices for internal flights maximum by 30%

Business Materials 29 June 2014 15:57 (UTC +04:00)

Baku, Azerbaijan, June 29

By Fatih Karimov - Trend:

Iranian airlines can increase prices for internal flights maximum by 30 percent.

Head of Iran Civil Aviation Organization, Alireza Jahangirian said the domestic airlines are allowed to increase prices for internal routes maximum by 30 percent compared with prices in Iranian year 1391 (March 2012-March 2013), Iran's IRNA news agency reported on June 29.

On May 24, Iran Civil Aviation Organization circulated an instruction, allowing domestic airlines to liberalize air ticket prices.

The decision was taken in order to encourage domestic airlines to improve services.

On April 20, the Fars news agency quoted a senior Iranian aviation official as saying on the condition of anonymity that the price liberalization would be within the framework of the second phase of the subsidy reform plan.

The Iranian government announced petrol price hikes as high as 75 percent as part of the second phase of the subsidy reform plan which took effect on April 25.

The first phase of the subsidy reform plan kicked off in December 2010, when prices of staple foods and utility bills, as well as gasoline, soared overnight.

In the second phase of the plan, subsidized gasoline, available to each motorist in limited amounts, rose from 4,000 rials ($0.16, using the central bank's official exchange rate) per liter to 7,000 rials ($0.28).

It is estimated that the government will acquire 480 trillion rials (about $19.3 billion) in the current Iranian calendar year (March 2014-March 2015) in revenues through the implementation of the second phase of the economic reform plan.

The administration of former Iranian President Mahmoud Ahmadinejad implemented the first stage of the subsidy reform plan toward the end of 2010 in an attempt to wean the country off food and fuel subsidies.

Latest

Latest