TEHRAN, Aug 17 (AFP) - Iran's conservative-dominated parliament has agreed to privatize 49 percent of the country's national carrier Iran Air, Tehran newspapers reported Tuesday.
The government will retain a 51 percent stake in the airline in order to "prevent the private sector from taking over the majority", the reports added.
Parliament also approved the flotation in its entirety of Iran Air Tours (IAT), an Iran Air subsidiary that handles around 30 percent of domestic flights.
The MPs' decision has yet to be approved by the Guardians' Council, an unelected conservative-controlled watchdog which has powers to vet all legislation.
Economic liberalisation measures taken by reformist MPs, especially in the oil and banking sectors, have recently come under attack from the new conservative majlis which began its mandate in May. Reformists say that Iran's state-run economy is in dire need of foreign investment.
Shares in Iran Air will not be easy to sell, as the company is thought to have suffered losses of some 122 million dollars (100 million euros) from 2002 to 2003 and private investors are reluctant to invest in a company while the government retains majority control.
Iran Air is also known to have a dilapidated fleet, as the airline has been hit by US-imposed sanctions that bar Iran from buying aircraft with more than 10 percent US components. Iran Air uses US-made Boeings purchased before the 1979 Islamic revolution, while about half of its 90 aircraft are rented Tupolevs.
Iranian Transport Minister Ahmad Khoram has admitted that several Boeing and European-made Airbus airplanes are currently grounded due to a lack of spare parts.