Thursday , 22 February 2024

Iran Government Considers Privatizing Debt-Stricken Flag Carrier

Iranwire – In a bid to address financial woes, the Iranian government is reportedly considering selling the country’s flag carrier and other state-owned companies to the private sector.

The potential transfer of Iran Air’s ownership to the private sector was high on the agenda of a December 5 meeting of the government’s Privatization Committee, local media reported.

In August, Iran Air’s CEO said the company owed $600 million to banks and that only 12 to 15 of its 50 planes were operational.

President Ebrahim Raisi’s administration has allocated 60 trillion tomans ($1.2 billion) in the upcoming budget for the transfer of state-owned companies to private investors, raising concerns over potential job losses and the dumping of public assets.

Many of the enterprises that have been privatized in recent years had accumulated huge losses and debt.

Reports said that the Privatization Committee also addressed the transfer of Tehran International Exhibitions Company to the Chamber of Cooperation. 

The company’s director said in August that its debts to Tehran Municipality amounted to $620 

Additionally, Mehr News Agency reported that 100 percent of the shares of Saratel Iran Construction and Facilities Company, which is affiliated with the Radio and Television Organization of the Islamic Republic, will be offered through a public auction.

The government also intends to sell over 73 percent of the shares of Esfarayen Industrial Complex, affiliated with the Iran Industries Development and Modernization Organization, on the stock market.