Foreign airlines earning $3B in Iran annually

Business Materials 29 June 2015 13:32 (UTC +04:00)

Baku, Azerbaijan, June 29

By Fatih Karimov - Trend: Foreign airlines are earning $3 billion in Iran annually, said Ali Reza Jahangirian, head of Iran 's Civil Aviation Organization.

In Iran, revenues from selling tickets amount to $3 billion for foreign airlines and 90 trillion rials (about $3 billion based on free market exchange rate) for domestic airlines, Iran 's Fars news agency quoted Jahangirian as saying June 29.

Some 20-30 percent of the revenues are being spent on repair and maintenance operations, he added.

The official said that the international sanctions have hampered the process of technology transfer. Meanwhile, a lack of long-term planning is among the main problems facing the country's aviation industry, he noted.

The International Civil Aviation Organization (ICAO) has predicted that Iran will be turned into a hub of global flights in the next 10 years, he said, adding that the country needs $30 billion to expand and renovate its aviation infrastructures.

According to him, some 58.1 million jobs in the world are directly or indirectly related to the aviation industry. The global aviation industry's GDP amounts to $2400 billion, equaling 3.4 percent of the world's total GDP. More than 25,000 commercial aircrafts are operation worldwide, transferring 2.8 billion people across the globe.

Edited by CN