Iranian airliners owe $450 million to oil ministry

Iran Materials 17 December 2011 15:31 (UTC +04:00)

Azerbaijan, Baku, Dec. 17 / Trend F.Milad/

About 13 Iranian airliners owe some 4.5 trillion rials (around $450 million) to the oil ministry for buying jet fuel on credit, the Pana news agency reported.

Since September the debt has surged from $250 million to $450 million, the report added.

Aseman and Iran Air have more debts to the oil ministry.

After launching the Subsidy Reform Plan, jet fuel price on domestic passenger airlines increased from 1,000 rials to 4,000 rials, which increased ticket prices.

The subsidy reform plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years.