Mar 29, 2013

Armenia’s Armavia air company to halt flights and begin bankruptcy procedure

Armenia’s national air carrier, Armavia, said today it will halt flights from April 1 and will begin bankruptcy procedure, the company’s press office reports.  

It was said in the company’s press release that the 2008 global recession has wrecked many foreign air companies, particularly KUBAN, AEROSVIT, RED WINGS, AMERICAN AIRLINES, MALEV etc. 

“Aviation is an area where one shouldn’t be satisfied with what has already been achieved,” the press release says. “In recent tree years, the owner of Armavia invested money from other businesses into the air carrier, but things today leave no room for working this way. That is why it was decided to halt flights and start bankruptcy procedure.” 

The company’s press office also said that Armavia, which was established in 1996, started operating flights in 2001 possessing only one aircraft. The company added three other aircrafts to it in 2003 and seven in 2006. One year later, in 2007, Armavia already had 14 aircrafts in stock and operated 100 flights to more than 40 destinations in 20 countries.  

“Over a period between 2007 and 2010 the company has won a reputation for being a reliable partner carrying out its commitments properly,” the press release says. 

The company thanked all its passengers and wished them good luck. 

In November 2012, Mikhail Bagdasarov, president of MIKA Limited holding and owner of Armavia, voiced his intention to sell the company because of the economic crisis and the losses sustained from maintenance of Russia’s SuperJet. 

He said that there were Italian investors and businessmen from the East among potential purchasers.  

His license term expired on March 14, and no decision has come from the government so far to prolong it. 

Gagik Tsarukyan, a prominent entrepreneur and the leader of Prosperous Armenia party, was mentioned in Armenian media reports as likely purchaser. 

According to media reports, Bagdasarov intends to sell the air company for $50 million.


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