Stop Fundamentalism – Smaller Iranian airline companies may be going bankrupt soon due to a recent threefold jump in airplane fuel prices and the ongoing fall in the number of travelers.
Following implementation of the first phase of a new government subsidy measure in Iran, the price of airplane fuel has jumped at least three times.
Iranian airline companies are unable to pay their debts to Iran’s national oil company, due to the hike in prices. There is currently an outstanding 750 billion Tomans that Iranian airliners owe the oil company. That has prompted the government to allow the confiscation of assets of airliners to compensate for the debt.
In turn, Iranian airliners have raised ticket prices 70 percent for domestic flights and 90 percent for travelers going abroad. That, among other reasons, has led to a decrease of 25 percent in air travel in Iran.
Many European airliners have also canceled their flights to Iran in recent months due to low number of passengers in the country.