Gov't Owes $400m to Domestic Airlines

The government owes 16 trillion rials ($400 million) to domestic airlines, according to the head of Iranian Airlines Association.

Speaking to ISNA, Maqsoud As'adi Samani added that clearing the debts is essential to "improving the financial status of the airlines".

He voiced support for a recent move by President Hassan Rouhani's administration to reach a barter deal with Aseman Airlines, calling for the courtesy to be extended to other carriers.

Last week, the government reached an agreement with Aseman to clear the airline's estimated 10-trillion-rial ($250 million) debt to government-owned entities. The airline was indebted to Iran Insurance Company, Iran Airports Company and the National Iranian Oil Products Distribution Company.

"What the administration did for Aseman Airlines can be done for other carriers … that are under severe pressure to pay off their debts," Samani said.

"This bartering with airlines will ensure the debts are cleared in a short time."

Iranian airlines owe an estimated 7 trillion rials ($175 million) to Iran Airports Company alone. The company said it has had "fruitful" discussions with the airlines and that every carrier "has a comprehensive plan to repay its debts".