Economy, Domestic Economy

Small Investors Allowed to Establish Airlines

Small Investors Allowed to Establish AirlinesSmall Investors Allowed to Establish Airlines

The Aviation High Council has allowed investors with as little as 300 billion rials ($8.57 million) and even one plane with less 100 seats to establish airlines provided that they limit their flights to smaller suburban airports. Iran is home to 54 mostly loss-making airports and over 90% of the flights go only to 15 airports. The move aims to improve the performance of smaller airports, Mehr News Agency reported. Sanctions imposed by the United States since the 1979 Islamic Revolution have left a huge impact on Iran’s aviation industry, including airports that are in dire need of modern equipment and infrastructure. That coupled with a dilapidated fleet and infrastructural problems, such as low fares, have made the industry uneconomical for many airlines.