Free Services to State Bodies Sapping IAC Finances

EghtesadOnline: Iran Airports Company has delivered free services to the tune of 3.6 trillion rials ($90 million) to military institutions in the last Iranian year (March 2015-16), IAC’s managing director said.

News ID: ۷۷۳۴۳۸

23 January 2017

“The estimated costs of these services stand at 4.2 trillion rials ($105 million) for the current Iranian year (March 2016-17),” IRNA also quoted Rahmatollah Mahabadi as saying.

“We hope the government reimburses the company for the costs, so it could improve air traffic management and control systems, and expand airports’ infrastructures,” he added.

The IAC chief’s remarks come as the company has been engaged in a dispute with the Islamic Republic of Iran Air Defense Force as the latter is claiming a share of IAC revenues, Financial Tribune reported.

The Ministry of Roads and Urban Development has asked the government and parliament to deny the air force this share.

“One of the main reasons behind the diminished economic vitality of Iran Airports Company is the imposed costs of delivering free services to state organizations, such as the Islamic Republic of Iran Customs Administration, the Immigration and Passport Police Office, Iran Veterinary Organization Quarantine and Biosecurity, and Bank Melli Iran as well as protocol procedures of government officials, the Islamic Republic of Iran Army, the Islamic Revolutionary Guards Corps, Islamic Republic of Iran Navy and Law Enforcement Force of Islamic Republic of Iran,” reads a report recently published by the Transportation Industry monthly.

The IAC’s annual budget stands at 13 trillion rials ($325 million). Neither does the company have a fraction of public budget, nor does it enjoy any free facilities from state-run institutions, according to the report. It is not entitled to any kind of tax exemption either.

Military and government personnel flights constitute 30% of all the flights operated by Iranian airports, it added.