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Sanctions are now grounding many Iranian flights

and exchange rate fluctuations, the Iranian Labor News Agency (ILNA) reported last week.

In an interview with ILNA, the chairman of the Board of Directors of Iranian Airlines Association, Abdol-Reza Musavi, said:

“Since the phase-out of subsidies, airlines have been experiencing a liquidity squeeze and the number of grounded planes is on the increase.”

Musavi said: “The expenditures of Iranian airlines are above the global average because of sanctions and fluctuations in the exchange rate.”

Musavi said: “With the phase-out of subsidies, the price of fuel has increased by 400 percent and despite a 35 percent rise in the foreign exchange rate since Farvardin [March/April 2011], the price of tickets has only risen by 35 percent.”

Musavi called for more support from the government for the aviation industry, saying: “The sanctions against Iran’s air fleet will become ineffective if the rules and regulations are amended and more inexpensive facilities are offered to the Iranian air fleet.”

Musavi said: “The aviation industry is one of the most deprived industries in the country because of lack of support from the government.”

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