People, Travel

Airfares to Be Deregulated in 2016

Airfares to Be Deregulated in 2016Airfares to Be Deregulated in 2016

Civil Aviation Organization of Iran has formed a network for distribution of air tickets at deregulated fares.

“It is impossible to raise service quality at prescribed fares,” Tinn News quoted Ali Abedzadeh, the head of Civil Aviation Organization of Iran, as saying.

The fares were scheduled to be diversified in the first year while their deregulation was to take place in the last year of the Fifth Economic Development Plan (2011-16). These measures are aimed at improving the quality of air transport services.

“The parliament conducted thorough studies in this regard before including it in the Fifth Plan,” he said.

No Other Option

Unfortunately, in the first three years of the Fifth Plan, no efficient measure was implemented in this regard. However, in the past two years, the government took steps toward diversification of fares.

Air transport systems across the world have also diversified and deregulated airfares.

“We have no option other than deregulating the fares,” Abedzadeh said. “Deregulation demands special infrastructures and does not necessarily entail an increase in ticket fares.

A network for distribution of tickets is essential for deregulation. CAO is expanding the network to which most airline companies are connected. They should offer various fares for their flights.

Variation in fares is a natural consequence of deregulation. At deregulated fares, passengers will be offered more choices. They will be free to choose among flight times, ticket fares and additional services.

The most important benefit of deregulation is that it brings about competition between airline companies which, in turn, helps raise the quality of services.

Aviation is an expensive industry where any expansion incurs heavy costs. Many countries have failed to manage these costs.