Iran General NewsTwo airlines suspend Iran flights as economy weakens

Two airlines suspend Iran flights as economy weakens

-

Reuters: Two European airlines said on Saturday they were halting services to Iran, a sign of the crumbling purchasing power of Iranians as their economy buckles under the weight of Western sanctions. LONDON (Reuters) – Two European airlines said on Saturday they were halting services to Iran, a sign of the crumbling purchasing power of Iranians as their economy buckles under the weight of Western sanctions.

Air France-KLM (AIRF.PA) will suspend its Amsterdam-Tehran service starting April 2013, a spokesman for the carrier said. It currently flies to Iran four times a week.

Austrian Airlines, a unit of Germany’s Deutsche Lufthansa (LHAG.DE), is cancelling its services to Iran due to a lack of demand, a spokesman said. The carrier’s last flight from Vienna to Tehran will be on January 13.

It used to fly to Tehran four times a week, but reduced that to three in November.

The Iranian rial has lost about two thirds of its value against the U.S. dollar in the last year, following U.S. sanctions on its central bank and a European Union embargo of Iranian oil, levied over Iran’s disputed nuclear program.

That depreciation has made imported goods and foreign plane tickets far more expensive for Iranians.

A spokesman for Lufthansa said the German carrier was continuing to fly to Tehran five times a week. Italian airline Alitalia also flies to Iran, according to its website.

The U.S. and its European allies fear Iran is trying to build a bomb under the cover of a civilian nuclear program. Iran says its program is purely peaceful.

The sanctions against Iran’s energy and banking sectors have made it more difficult for the Iranian government to earn foreign currency, raising concern that the central bank will not be able to defend the rial and depressing its value.

Airlines already had to think twice over whether to maintain services to the country since Iran said in 2011 it had stopped providing fuel to European aircraft in retaliation for their refusal to fuel Iranian planes.

Austrian Airlines suspended its service to Tehran for more than two months last summer because it could not be sure of getting its planes refueled there.

(Reporting By Maria Sheahan in Frankfurt and Sara Webb in Amsterdam; Additional reporting and writing by Yeganeh Torbati in Dubai; Editing by Tom Pfeiffer)

Latest news

Growing Calls for the Terrorist Designation of the IRGC

On Monday, April 29, the Iranian regime’s Foreign Ministry spokesman, Nasser Kanani, in a weekly press briefing, claimed that...

Iranian Merchants Facing 60% Decline in Sales Due to Presence of Morality Police

Discontent among merchants due to a 60% decrease in sales attributed to the presence of the morality police, exerting...

Dire Living Conditions of Iranian workers on International Labor Day

On the occasion of International Workers' Day, May 1, the dire economic conditions of Iranian workers have reached a...

Only One-Fifth of Iran’s Annual Housing Needs Are Met

Beytollah Setarian, a housing expert, said in an interview that Iran needs one million housing units annually, but only...

Resignation, Job Change, and Nurse Exodus in Iran

The state-run Hame-Mihan newspaper has addressed the problems of the healthcare workforce in Iran, examining issues such as resignations,...

International Monetary Fund: Iran Needs “$121 Oil” to Avoid Budget Deficit

The International Monetary Fund (IMF) states in its latest quarterly report that the Iranian government needs the price of...

Must read

Iran plots Ramadan infiltration in Iraq

Washington Times: A top Iranian dissident living in Paris...

Iran arrests journalist after meeting abroad

AFP: An Iranian journalist who worked for the now...

You might also likeRELATED
Recommended to you

Exit mobile version