People, Travel

Airlines Warned Against Price Gouging

Airlines Warned Against Price GougingAirlines Warned Against Price Gouging

A senior official at the Civil Aviation Organization of Iran has warned travel agencies against selling plane tickets at inflated prices.

Under legislation officially enacted last week, Iran Civil Aviation Organization decided to deregulate airfares on 170 domestic routes (66% of all routes), while tickets for 87 routes will be sold at prescribed (subsidized) rates.

The organization has announced that all air ticket prices will be liberalized by the end of the current fiscal year (March 19, 2016), as part of the Fifth Five-Year Economic Development Plan (2011-16).

Mohammad Khodakarami, deputy head of CAOI, said airlines now have the advantage to set their own fares. “Travel agencies cannot overcharge their clients… it is illegal and will have consequences,” he warned.

On the topic of airfare deregulation, Khodakarami said the move will make ticket prices competitive, which can only be beneficial.

“Fares on the same route may vary during the week depending on demand,” he said.

The organization says deregulated fares will offer better and more options to passengers, as they will be free to choose among flight times, ticket fares and additional services.

Airlines would also be able to offer improved services, thanks to an aviation marketplace in which they are free to provide services when and where demand exists, without having to seek permission from state and government planners and decision makers.