Despite claims by the Central Bank of Iran, air travel agencies say they have yet to receive their foreign currencies at the cheaper rates offered in the government's system designed to meet currency needs.
This has led to confusion surrounding airfares, as a two-tiered pricing system may emerge for local flights.
On Oct. 31, the CBI released a statement on its official news website announcing that meeting the true foreign currency needs of the society has always been on its agenda and it has strived to fulfill its mandate in recent months.
"In this vein, the rumor of inadequate foreign currency supply to air travel companies is hereby denied," the statement said.
The CBI maintained that it has held several meetings with representatives of air travel firms and will provide them with the currencies they need as soon as possible
The monetary regulator in April established an online system called Nima to address the foreign currency needs of importers and service providers in the face of returning US sanctions that have unleashed an ongoing currency crisis.
Each US dollar is traded for about 90,000 rials in Nima, which is a far cry from the current rate in the open market hovering above 140,000 rials.
Iran's local and international air travel costs have exponentially surged in recent months on the back of inflationary effects caused by the currency crisis. But some airlines have jacked up their prices disproportionately, saying they have no access to the cheaper government rate to meet their needs.
On Sept. 22, Secretary of the Association of Aviation Companies Maqsoud As'adi-Samani announced that two aviation companies managed to obtain their foreign currencies at cheaper Nima rates, while a third is waiting in line.
Local airfares for a number of air travel routes declined accordingly and representatives said they expect further price declines when all airlines gain access to cheaper currency.
In its statement, the CBI maintained that it has held several meetings with representatives of air travel firms and will provide them with the currencies they need as soon as possible.
However, As'adi-Samani told ISNA on the same day the CBI's statement was published that aviation companies have yet to receive their required currencies.
The official pointed out that in late summer, aviation firms agreed on price ceilings. The firms were obligated to charge customers only up to 10% higher than those ceilings for local flights.
As some firms received cheaper government rates, they charged much less than the ceiling.
However, As'adi-Samani said the CBI's promise of providing currencies has not materialized yet as "approximately from every 10 requests filed by the firms, only one succeeds in receiving currencies at the Nima rate". This, he added, forces companies to obtain the rest of their needed currencies from the open market and fail to adhere to the agreed ceilings.
The representative stressed that "from now on, the airlines themselves will decide how to finalize their flight costs".
As he pointed out, a two-tiered pricing protocol will be formed for local flights: one will be cheaper and offered by firms that have managed to obtain their required currencies from Nima, and the other will be much more expensive as it will be based on open market exchange rates.
"Passengers must monitor market conditions and purchase their tickets after surveying different prices," As'adi-Samani said.
The representative echoed aviation companies' claim that they have to provide for at least 50% of their total expenses in foreign currencies. Critics, on the other hand, say airlines are exaggerating their foreign currency expenses for local flights to charge more in an industry that has grown much less lucrative due to a significant decline in public purchasing power.
Challenges facing passengers and aviation companies have had wider implications and increasingly found their way to more jurisdictions.
On Nov. 2, a host of chief executives of aviation firms, accompanied by the CEO of Iran's Civil Aviation Organization Ali Abedzadeh, met with Tehran Prosecutor Abbas Jafari Dolatabadi.
The prosecutor heard their arguments, reviewed problems facing passengers and categorized them in seven groups. He said the issues will be separately and quickly focused on in the near future.
"The judicial force accompanies aviation firms for removing hurdles created by sanctions," he said, calling on Abedzadeh to gradually eliminate chartered flights.
Dolatabadi was referring to the reimposition of US sanctions on Iran.
