Airlines Stop Iranian Flights Due to Currency Crisis

Western sanctions continue to put the squeeze on Iran's economy

FOREIGN airlines, including Malaysia's AirAsia and Britain's BMI, are ceasing services to Iran amid its mounting economic problems spurred on by Western sanctions.

AirAsia announced it was suspending its four flights a week between Kuala Lumpur and Tehran from next Sunday because of challenging business conditions, notably the "volatility of the Iranian currency".

BMI will halt its flights from Saturday because of its full takeover by British Airways, a spokeswoman for the parent airline said in London, adding that "customers will be offered a full refund".