May 30, 2013

Zhamanak: Armavia employees hold protest to demand due salaries

Employees of Armavia Airlines held a protest on Wednesday demanding their due salaries for 6 months, Zhamanak daily reports. The protesters first gathered at Mikhail Baghdasarov’s A.S.G. insurance company but failed to meet with Armavia general director Norayr Beloyan. They moved to Mika Limited office, located on the other side of the building, but several men standing near the entrance did not allow them to meet with Baghdasarov.


May 25, 2013

Armavia airline staff demand their wages

“Zhogovurd” received a call from pilots, flight attendants and technical workers of Armavia airline. They told the newspaper they were dismissed following the airline’s closure and Armavia owes them back wages for 7 months.
The Armavia staff sent a relevant letter to the prime. They also announced that unless the problem is solved as soon as possible, they will stage a protest outside the Armenian president’s residence on May 29.


May 24, 2013

Importance of air traffic doubles with limited overland chances: Armenian president

Aviation become even more important for Armenia under the circumstances of limited overland opportunities, Armenia’s president Serzh Sargsyan said at his meeting with the president of the European Civil Aviation Conference (ECAC) Catalin Radu Thursday.

Sargsyan stressed the importance of ECAC’s role in developing aviation and its security in Europe and worldwide.

Radu, in his turn, expressed satisfaction with ECAC’s cooperation with Armenia’s civil aviation that is among leaders in applying international standards.
The sides exchanged views on civil aviation security in the region.

The key overland route connecting Armenia with Russia and Europe is via Georgia. The motor road across the border with Iran is another way out.

Armavia national air company halted its operations and started bankruptcy as form April 1.  During 2012, three European air carries, British Airways, LOT – Polish Airlines and Air Baltic left the Armenian market.


SRC sues Armavia over air tax

The State Revenues Committee (SRC) has brought a lawsuit against Armenia’s airline, Armavia, over air tax payments. Finance Minister David Sargsyan made this announcement in reply to a question asked by a parliament member during the question-and-answer session in the National Assembly on Wednesday.

When asked how much money Armavia owes, the minister said that the airline has other debts as well and various creditors are now suing Armavia.

“The final calculation of its debts to the state has not been made yet,” said Sargsyan.

Armavia, considered a national air carrier in Armenia, filed for bankruptcy on April 1.


Armavia’s debt to Zvartnots airport estimated at $5,5 mln

Armenian national carrier Armavia’s debt to Zvartnots airport totaled about USD 5,5 mln, deputy manager of Zvartnots said.
Dwelling on Armenian government’s lawsuit against the airline company, Andranik Shkhyan said the airport is ready to join the initiative to get back the money.
Armenian government filed a lawsuit against Armenian national carrier Armavia. Finance Minister David Sargsyan linked the step with the collection of air taxes. He further noted that lawsuits were filed by other lenders, too, with no final review of the airline's commitment to the state made yet.
Armavia resolved to cease operations from April 1, 2013.


May 21, 2013

Armavia recovery program to be discussed with Armenian president

Armavia airline has not yet filed an application for its bankruptcy to the court, the airline’s spokeswoman Nana Avetisova told According to her, lawyers are preparing the necessary documents.
Let us remind you that Armavia submitted a program on the airline’s recovery to the Public Council, which will submit that program to the president and government of the country.
“No answer has been received. Decisions of the Public Council are advisory ones. Members of the Public Council will meet with the Armenian president in June and examine Armavia’s problem,” spokeswoman for Public Council Ani Gasparian told


May 10, 2013

Public Council introduced suggestions regarding "Armavia" to President and Government

The Public Council has already introduced its suggestions regarding the future of "Armavia" Air Company and the status of national air carrier to the President and the Government of the Republic of Armenia. The Council finds it necessary to have national air carriers by providing competitive equal conditions. The Public Council informed "Armenpress" that the program of recovery of "Armavia" Air Company has also been introduced to the Government and President of the Republic of Armenia. There are 9 points included in the aforesaid program. In particular, "Armavia" Air Company finds that its recovery depends upon restoring equality in the air carriers market in Armenia, separation of concept of "basic" airport from the concept of "national" air carrier, and support to the basic air carriers in the issues regarding the airports in the Republic of Armenia and other services as well.
Notwithstanding the Chief Department of Civil Aviation sees the solution of the problem in the policy of "open heaven" saying that it will foster the growth of competitiveness, "Armavia" Air Company finds that the policy of "open air" will have a devastating impact on the aviation.


Creditor banks agree to write off penalties and fines of Armavia

The creditor banks had agreed to write off the penalties and fines of Armenia’s national air carrier, Armavia company, Transport Communications officer Isabella Muradyan said in an interview with ARKA news agency.

Muradyan is a deputy chief of Armenia’s Public Council of Air and Transport Communications. 
Armavia company has stopped operating flights on 1 April and declared bankruptcy. 

“We are aware that the banks agreed, and penalties were written off. It refers to the debt amount only, which is covered by the air company’s pledged property,” she clarified. 

According to Russian  “Kommersant” daily newspaper, Armavia’s debt to some Russian banks, airports and Rosaviation stands at nearly $25 million. Besides the Russian banks, the company owes money to several large Armenian banks. Particularly, Armavia owes several million rubles  to Vnesheconomban, and $22 million –to VTB. 

Chairman of VTB Bank (Armenia) Yuri Gusev earlier said the bank together with its stockholder, Armenia’s Central Bank and Armavia’s owner are seeking for the maximally painless solution to the debt issues. 

According to Muradyan, Armenia’s government should follow the creditors in the write-off, because the company’s debt to the government is not big, and the penalties and fines exceed the debt amount three times. 

 “I think, in the current situation, when the government can’t provide a direct financial assistance to the company, it should at least write off the penalties,” she noted. 

Muradyan highlighted in order to solve the issues,  it is necessary to create an institute of a national air carrier where the government will hold block of shares of the company. 

“Armavia has submitted a list of proposals to the Public Council on how the company can re-launch its operation, and I think, it is the best solution, and it is important to follow the path of re-organizing both: the sphere and the carrier,” she resumed.  

In the list of proposals, Armavia mainly insists on rebuilding the parity at the market. The company also requires to remove 10,000 drams (the so-called “tax on air”) from the ticket cost. Armavia also proposes to the government to gain a part of shares of the company thus restructuring the debt to the state budget. 

Some other conditions are to define the clear criteria of  “basic airport” and “national air carrier” terms, and to introduce a 30% discount on airport fees compared to the foreign companies. 

The analogical discount is proposed for leased areas for basic air carriers.

In addition, in order to avoid the collapse of the national air deliveries, it is proposed that one and more air carriers should operate, and air companies should buy air fuel themselves and pay affordable fees for airport services.