The director of the Iranian Privatisation Organisation (IPO), Heidari Kord Zangeneh, has announced that the two state-owned airlines are to be privatised as part of a plan to sell government aviation assets.

According to Zangeneh, the organisation will oversee the partial sale of all Iran’s major aviation assets, except the Civil Aviation Organisation (CAO). The sales will include the country's airports.

In 2008, the government said it planned to phase out a 30 per cent fuel subsidy, ahead of privatisation.

The airline's sales, catering, flight handling, supply, cabin crew and maintenance divisions are being sold off and will function as separate companies. Each unit will be floated on the Tehran Stock Exchange, with the government retaining a 51 per cent stake (MEED 4:6:08).