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Iranian airlines raise ticket prices by 65 percent

Business Materials 6 November 2012 12:30 (UTC +04:00)

Azerbaijan, Baku, Nov.6/ Trend F.Milad/

Iranian airlines have increased ticket prices for domestic flights by an average of 65 per cent as of November 6, the head of the Association of Iranian Airlines, Abdolreza Mousavi, said.

For example a Tehran-Kish airplane ticket will be sold at the price of 1.7 million rials (some $138 based on the official rate of the US dollar) while it was previously being sold at one million rials (some $81.5), the ISNA News Agency reported.

This is after the director of the Civil Aviation Organisation Hamid Pahlavani announced on October 10 that Iranian airlines will be increasing ticket prices for domestic flights by a maximum of 50 per cent.

Pahlavani added that different factors including foreign currency prices are considered when setting ticket prices.

If the current fuel price of 2000 rials is maintained, prices will be increased by a maximum of 50 per cent, he noted.

Abdolreza Mousavi had also said in September that until late June of last year, aviation fuel cost 1000 rials and since then it has been 2000 rials (Iran's official exchange rate is 12,260 rials to the dollar).

The managing director of the Airtour passenger airline Sirous Baheri said in October that the airline has suffered 200 billion rials (some $16 million) loss as the administration was no longer providing it with the dollar at a reference rate of 12,260 rials. Therefore, the airline cancelled all its international and tourism flights, ILNA reported.

As the administration does not provide the airline with an official rate dollar, the airline has to pay costs based on the free market dollar, Baheri noted.

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