Iran set to liberalize air fares in 5 months:Iranian official

TEHRAN,Apr.21(MNA) - Iran is planning to liberalize air ticket prices in five months within the framework of the second phase of the subsidy reform plan, the Fars news agency quoted a senior Iranian aviation official as saying on the condition of anonymity. The second phase of subsidy reform plan is likely to begin by Friday. Like the first phase, second phase of subsidy reform plan focuses on slashing government subsidies for energy. The Civil Aviation Organization of Iran has announced that it will liberalize ticket prices in order to encourage domestic airlines to improve services. It is estimated that the government will acquire 480 trillion rials (about $19.3 billion) in the current Iranian calendar year (March 2014-March 2015) in revenues through the implementation of the second phase of the economic reform plan. The administration of President Mahmoud Ahmadinejad implemented the first stage of the subsidy reform plan toward the end of 2010 in an attempt to wean the country off food and fuel subsidies. In the first stage the government paid 45,500 rials (about $18) to citizens to compensate for a partial cut of subsidies. On February 16, MPs approved a bill according to which cash payments in the second phase will only be given to low-income families.