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Iranian airfares soar higher

by Zamaneh Media
November 6, 2012
in Latest Articles
Reading Time: 1 min read
0
Iranian airfares soar higher

Domestic airfares in Iran have gone up by 65 percent as of today, November 6.

Abdolreza Mousavi, the head of the Iranian Airlines Association, said on Tuesday: “According to the directive of the National Aviation Organization, fares for domestic flights with go up by an average of 65 percent.”

He added that since necessary foreign currency is not being provided for airlines, the prices should have risen by 100 percent, but the Supreme Council of Aviation only approved an average increase of 65 percent.

Mousavi went on to say that with the sudden rise in the rial’s exchange rate against foreign currencies, airlines are facing an average annual loss of 15 billion rials and, therefore, were forced to increase their fares.

Earlier reports had predicted a 50-percent increase.

Aviation officials have criticized the Central Bank for failing to provide the necessary foreign currency for their sector, thus perpetrating the rise in fare prices.

In recent months, as the sanctions on Iran’s oil exports and financial sector dig deeper into its ability to do business internationally, the Iranian currency has lost much of its value, causing rampant inflation across the country.

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