Page 43 - IRANRptDec20

9.1.3 ​Aviation sector news
Iran to draw ​€​200mn from sovereign wealth fund to pay families of victims aboard Ukrainian aircraft tragically shot down
Iran hopes October will bring introduction of “flying taxis” for remote regions
Iran has announced it will tap €200mn from its National Development Fund (NDFI) to compensate the families of victims of the January tragedy in which a Ukraine International Airlines (UIA) aircraft was shot down in error just outside Tehran, ​Shargh​ newspaper reported on November 24. Iran has been heavily criticised in recent months for its handling of the aftermath of the disaster which saw an Islamic Revolutionary Guard Corps (IRGC) unit fire two missiles at the Kyiv-bound jet, causing the deaths of all 176 on board. Ukraine has accused Iran of dragging its feet. ​There have been rows over Tehran taking several months to hand over the plane’s black box flight recorder​. It eventually did so ​after pressure was exerted​ by a group of countries from where victims came from.
The newspaper report said that the government has made a provision in its next annual budget to make payouts to both Iranian and foreign families of the deceased.
The NDFI, a sovereign wealth fund (SWF) draws funds from Iran's energy revenue. Its purpose is to provide loans to, or invest in, projects that will ultimately secure foreign currency for Iran.
Economist Hadi Haqshenas, who was quoted in the article, said that the country had “no other choice” but to use the NDFI funds as its foreign currency reserves remain under strain due to US sanctions.
Insurance companies in Iran are reportedly unable to pay out compensation due to the depreciation of the Iranian rial (IRR). That is forcing the Iranian authorities to foot the bill.
In October, Ukraine welcomed an Iranian change of heart on awarding compensation. Previously, Tehran said it would pay families of victims with dual nationality less than families of Iranian victims.
In a statement released by ​Ukraine's Foreign Ministry​ on October 21, Ukrainian Deputy Foreign Minister Yevhen Yenin welcomed "Iran's decision to take full responsibility for the downing of the Ukrainian plane, as well as its readiness to provide equal compensation to the relatives of all victims, regardless of their citizenship."
Iranian aviation officials said armed forces accidentally shot down the Boeing 737-800 on January 8 because of a misaligned missile battery and miscommunication between soldiers and superior officers.
The people killed in the tragedy were from Iran, Ukraine, Canada, the UK, Germany, Sweden and Afghanistan.
Iran hopes to this month introduce “flying taxis” for remote regions, according to local news agencies.
Tehran continues to deregulate the Iranian aviation industry. Several new air operators have arrived on the market in recent years, but an air taxi operator is yet to launch.
The secretary of the Space Technology and Intelligent Transportation Development Headquarters of Vice President for Science and Technology Manouchehr Manteqi announced that the country hopes to see its first flying taxis in the sky this month, following months of speculation.
He said flying taxi services would help to deliver "economic prosperity" by connecting regions to the benefit of low-population areas in less prosperous provinces.
The service would start out with several small planes that carry four to 19 people between low-traffic airports, the official said, adding one idea is to revive forgotten regional hubs with a lower cost base for flying.
43​ IRAN Country Report December 2020 www.intellinews.com