Azernews.Az

Iranian airlines are unable to pay off their fuel debts to the Oil Ministry due to their poor financial position, Fars news agency quoted the head of the association of Iranian airlines, Abdolreza Mousavi, as saying.

With the rising foreign currency exchange rates and fuel prices, the goal of expanding passenger seats will never be realised, he added.

Many of the national fleet planes have been grounded due to financial problems, he said, adding that spare parts and components are purchased from second-hand sources with great difficulty.

On January 14, Iran increased the price of fuel for international flights by 14,200 rials ($1.1) to 21,200 rials ($1.7), a triple rise within a week, The Jomhouri Eslami daily reported.

"The U.S. has been trying to ground the Iranian civil aviation industry for 30 years, but they could not. Instead, the Iranian administration grounded the industry within a week through increasing fuel prices by 14,200 rials," Mohammad Hassan Aboutorabi-Fard, deputy speaker of Iran's Majlis (parliament), commented.

The recent 60-70 per cent increase in Iranian airlines ticket prices have caused a 50 per cent fall in the number of passengers, according to Mehr news agency.

On January 7, many domestic flights were cancelled because the National Iranian Oil Products Distribution Company (NIOPDC) had not provided the airlines with fuel due to their outstanding debts.

NIOPDC says the airlines owe five trillion rials (about $410 million) to the company. The airlines believe that rising fuel prices has increased their costs by up to 300 per cent.
Iranian airlines increased ticket prices for domestic flights by 65 per cent averagely as of November 6, 2012.