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Rising ticket prices drops number of Iran’s international flights

Iran Materials 10 February 2013 14:55 (UTC +04:00)

Azerbaijan, Baku, Feb.10 / Trend F.Mehdi/

The number of passengers of international flights in Iran has decreased by 20 percent due to rising ticket prices, the YJC quoted Mohammad Rasoulinejad, the director of Iran's national airports company, as saying.

Some 32.9 million travelers were transported via the country's international airports during the first ten months of the current Iranian calendar year, which began on March 20, 2012, he added.

Iranian airlines debt to the state-owned jet fuel supplier has increased up to 12 trillion rials (some $978 million based on the official USD price of 12,260 rials and some $313.3 based on the free market price), Deputy Director of National Iranian Oil Products Distribution Company (NIOPDC) Alireza Rajabpour said.

NIOPDC daily sells 3 million liters of jet fuel to domestic airlines, the Tabnak News Website quoted Rajabpour as saying.

The price for jet fuel for international flights has soared to 21,000 rials ($0.75) from 7,000 rials ($0.25) per liter.

The jet fuel is currently being sold at 7,000 rials ($0.57 based on the official rate of USD) per liter.

Iranian roads and urban development minister said last month that all the airlines that don't pay off their debts to the oil ministry for jet fuel will be grounded.

Ticket prices were increased by 65% to cover jet fuel costs, this leaves airlines with no excuse for not paying their debts, the ISNA News Agency quoted Ali Nikzad as saying.

Head of the Association of Iranian Airlines, Abdolreza Mousavi, announced last week that the Iranian airlines are ready to once again cut the ticket prices, in case the government decreases the jet fuel prices.

The rising price of US dollar is affecting the Iranian airlines, the Mehr News Agency quoted Mousavi as saying.

Some of the airlines have been grounded due the high costs, he added.

The demand for payment comes amid continued economic pressure caused by sanctions over Iran's disputed nuclear program which has more than halved the country's revenue from crude oil sales.

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