Iran Air, the country's national airline, hiked domestic fares by 21 percent from Tuesday, October 23 the company's director general, Davoud Kechavarzian, announced.
Kechavarzian, interviewed by state television, said this was the first increase in two years but he did not say why prices were hiked now. However, the press has recently reported that the airline has been faced with a rise in costs for services, especially at airports.
Air transport in Iran is subsidized by the state, which is targeting a progressive liberalization of prices. Iran Air's fleet consists of some 30, mostly Boeing Co. aircraft bought before the 1979 Islamic revolution. Demand for air transport has been growing strongly. — (AFP, Tehran)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
