Ongoing Dispute Between Airlines and Government Agencies; Airplane Tickets Become Scarce Again

Domestic flight tickets have become scarce again, leading government-supporting media to blame airlines for this situation, with the news agency "Tasnim" headlining "Airlines in a State of Defiance." According to reports from Iranian news sources, the air transport market has become chaotic, and domestic flight tickets are in short supply. The Tasnim news agency reported that domestic airlines began increasing ticket prices on domestic routes at the end of last month, citing a ruling from the Administrative Justice Court. The dispute over pricing and price-setting has escalated since the beginning of this year in Iran's air transport sector, and in July of this year, after the announcement of a 29% increase in ticket prices by the Civil Aviation Organization, airlines opposed this rate. Consequently, the Association of Airlines filed a complaint with the Administrative Justice Court against this action. The Administrative Justice Court ultimately ruled in favor of the airlines, stating that these companies could set their price floors and ceilings based on supply and demand. As a result, ticket prices for domestic routes experienced a 70% increase. However, in recent days, news has emerged indicating an "order" to not implement the ruling of the Administrative Justice Court. According to media reports in Iran, even the 70% price increase did not lead to adequate supply, and the availability of airplane tickets remains low. Experts believe that low supply is one of the tools airlines use to create higher profit margins and raise prices again in the near future. In recent days, offices of some airlines at Mehrabad Airport were closed due to overpricing. However, the Ministry of Roads, as the authority in this area, is attempting to stop the ruling of the Administrative Justice Court through influence and has put punitive actions and negotiations with "Court" officials on its agenda. Just a few days after the ruling of the Administrative Justice Court, on January 25, the head of the court issued an order to suspend the ruling to negate the price increases. Consequently, the website "Didban Iran" reported on the conditions in this sector, stating, "Airlines have outsmarted the aviation authorities and, by complaining to the Administrative Justice Court and obtaining a favorable ruling, have become their own pricing authority." This action comes while Article 6 of the Civil Aviation Law explicitly assigns the responsibility for determining and approving passenger and cargo air transport rates to the Supreme Council of Civil Aviation, which is done in coordination with the Market Regulation Headquarters. The Administrative Justice Court's complicity with inflation; the 70% increase in ticket prices by the court's ruling; the cost of accommodation in Iranian hotels has risen by 600%; the increase in domestic flight ticket prices; the average age of the country's aircraft is "over 25 years"; repeated increases in domestic and international air service prices; airplane tickets have become 4% more expensive.