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Iranian airlines to raise ticket prices by 50 percent

Business Materials 11 October 2012 22:59 (UTC +04:00)
Iranian airlines will increase ticket prices for domestic flights by 50 percent by the next two weeks, the director of the Civil Aviation Organization Hamid Pahlavani said, ISNA reported.
Iranian airlines to raise ticket prices by 50 percent

Azerbaijan, Baku, Oct.10/ Trend G.Mehdi/

Iranian airlines will increase ticket prices for domestic flights by 50 percent by the next two weeks, the director of the Civil Aviation Organization Hamid Pahlavani said, ISNA reported.

Pahlavani said different factors, including foreign currency prices, are considered to set the ticket prices.

"If the present fuel price of 2000 rials is maintained, the prices will be increased by maximum 50 percent," he noted.

Seyed Abdolreza Mousavi, who heads the Association of Iranian Airlines, has said that until late June of last year, aviation fuel cost 1000 rials and since then it has been 2000 rials (Iran's official exchange rate is 12,260 rials to the dollar).

The National Iranian Oil Production and Distribution Company however charges 4000 rials for the fuel it sells the airlines, an amount says Mr. Mousavi, the airline association never agreed to.

It would be impossible for the airlines to pay 4000 rials for fuel when the public pays for tickets that are based on a 2000 rial fuel rate and until ticket prices go up, the NIOPDC has to keep fuel rates the same, said the association chief.

The airlines, he added, don't have the money to pay the NIOPDC's bill.

Iran Airtour passenger airline has suffered 200 billion rials (some $16 million) as the administration will no longer provide the airline with dollar at reference rate of 12,260 rials, the managing director of the airline stated.

The airline cancelled all its international and tourism flights, Sirous Baheri added, ILNA reported.

As the administration does not provide the airline with official-rate dollar, the airline has to pay costs based on the free market dollar, he noted.

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