Iran Air to be reformed to pay past losses

Business Materials 16 February 2019 20:16 (UTC +04:00)

Tehran, Iran, Feb.16


Iran Air will be reformed, as it would help the company to compensate its past losses, The Minister of Road Development and Urban Planning Mohammad Eslami said.

“Iran Air faced losses in the past due to delayed services and payments. Those payments will be bartered with Iran Air’s debts, so the company will be able to compete with other airlines,” he said, Trend reports citing Fars News Agency.

The Iran Air company will have salary reform and structural changes alongside with renovating the fleet, he added.

"The fluctuation of foreign exchange rate has affected the costs for flights for the airline companies, so working capital should be provided for these airliners so that they would no longer sell charter flights,” Eslami said.

He noted that the charter flights should be provided in a travel package, otherwise the sale of charter seats will be suspended.

"The ministry has notified six airline companies that had charter violation."

Iran Civil Aviation Organization has previously announced a deadline for the airline companies to fix the charter option in their system.