State v. Armavia: Government sues “national carrier”

The government, as represented by the State Revenue Committee, filed a lawsuit against Armavia company for unpaid air taxes in mid spring, upon which the Administrative Court is starting a trial end of July. According to Datalex judicial information system, the plaintiff is demanding a compensation of 7.36 billion drams ($17.5 million) from Armenia’s national carrier which declared bankruptcy in early April.

On April 19, the court granted an injunction on the air company property and finances as motioned by the plaintiff. The preliminary court hearings were held in mid June and early July. Finance minister David Sargsyan stated during a parliament session that Armavia is indebted also to others, which in turn have filed respective lawsuits against the company.

The minister says the state has not done final calculation of the company’s obligations to the state.

In late March Armavia cancelled all its flights and started the bankruptcy process, but has not filed the bankruptcy petition to the court.

Earlier the company had publicized its debt and penalty lists, according to which it owes 5.5 billion drams (around $13.8 million) in air tax, and the penalty amounts to 16.2 billion drams (over $40.5 million). For two years since 2010 the national carrier was falling deeper into debts, totaling to 24.3 billion drams (around $60.7 million) it owes the state budget. The company, however, claims that only 7 billion drams from it is the actual debt, the other 17 billion are the result of penalties applied to it over a three-year period.

Armavia has submitted a ‘rehab’ program to the Public Council, which further submitted it to the government. The executive body has given no response so far.

Meanwhile Prime Minister Tigran Sargsyan has signed the concept paper on the tender of Armenian airline licenses, which implies a selection of three Armenian carriers registered in Armenia. This way the government hopes to achieve a competitive field in the sphere of civil aviation. The chief executive has also approved a stage-by-stage liberalization policy for air transportation. A number of discussions have been held by the government, the Public Council and the General Department of Civil Aviation (adjunct to the RoA Government) to assess the prospects and the potential of developing the field.

Chief of the Civil Aviation department Artyom Movsesyan says various approaches have been suggested, that can be roughly grouped under three main objectives: have a state or partially state air carrier, the government should take up“open sky” liberalizationand stage-by-stage liberalization policies.

Source: armenianow.com

U.S. Firm Contracted To Assist In Armenian Aviation Reform

The Armenian government has hired a U.S. consulting company to offer advice on its plans to open up Armenia’s aviation sector to more domestic and foreign airlines.

The government’s National Competitiveness Foundation signed a corresponding agreement with McKinsey & Company in Yerevan on Thursday. Under the agreement, McKinsey will assist in the planned “gradual liberalization” of the sector that was announced by the government last month following the bankruptcy of the Armavia national airline.

The private carrier ran up massive debts to airports, fuel suppliers and other service providers despite having enjoyed exclusive rights to international flights to and from Armenia for almost a decade.

A liberalization strategy drafted by Armenia’s Civil Aviation Department and approved by Prime Minister Tigran Sarkisian’s cabinet last month envisages that Armavia will be replaced by up to three other Armenian airlines to be selected soon. Officials said on June 6 that the government will call a relevant tender within a month.

The head of the department, Artyom Movsesian, told RFE/RL’s Armenian service (Azatutyun.am) that the tenders have been postponed until after McKinsey submits concrete proposals on aviation reforms. He said the delay was suggested by that Armenia’s foreign partners.

In Movsesian’s words, only one Armenian company has applied for flight permissions so far. The company, Air Armenia, has transported only cargo by air until now.

Andre Andonian, a senior McKinsey executive who signed the agreement, said the U.S. consultancy will look into the aviation experiences of Armenia’s neighbors as well as Latin American countries, notably Chile and Peru. “We will talk to all relevant partners in Armenia and abroad and will come up with a balanced approach and the best option,” he said at the signing ceremony attended by Sarkisian.

Several European, Russian and other foreign companies have increased the frequency of their flights or launched new services to Armenia since Armavia terminated flights to Europe, the former Soviet Union and the Middle East on April 1. The Argentine operator of Yerevan’s Zvartnots airport welcomed these developments in May, saying that they will reduce the relatively high cost of air travel to the country.

Andonian said that the Armenian aviation sector continues to be characterized by a lack of competition.

Source: azatutyun.am

Armavia airline employees demand back wages

Employees of Armavia, an airline that declared bankruptcy, staged a protest today, demanding that their back wages be paid.
Protesters said about 150 employees of Armavia have not been paid for 5-7 months, whereas others left Armenia and were employed by other airlines. They added that they intend to apply to court and are ready to go on hunger strike and hold sit-ins.

Source: aysor.am

Armavia's "air tax" debts reached AMD 5 billion 400 million

The "air tax" liability of "Armavia" Airlines reaches AMD 5 billion 400 million. The Minister of Finance of the Republic of Armenia Davit Sargsyan stated this at the course of the June 12 session of the National Assembly of the Republic of Armenia, while answering the question of the Deputy from "Rule of Law" fraction Hovhannes Margaryan.
As reports "Armenpress" among other things the Minister of Finance of the Republic of Armenia Davit Sargsyan underscored: "The "air tax" has been included in the cost of the tickets since 2009, and in accordance with the report introduced by the Chief Department of Civil Aviation, AMD 9,5 billion state taxes have been put on the list."
Armenia's national air carrier "Armavia" has made a decision to suspend the flights starting from April 1, 2013. The air company informed Armenpress that during the last three years the owner of the company implemented funds from other enterprises belonging to him aimed at the development of the Air Company. The situation became very complicated and hence, a decision was made to suspend all the flights and start the bankruptcy procedure.

Source: armenpress.am

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.

Source: panorama.am

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.

Source: aysor.am

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.

Source: arka.am

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.

Source: armenianow.com

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.

Source: panarmenian.net

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 Aysor.am. 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 Ayor.am.

Source: aysor.am

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.

Source: armenpress.am

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.

Source: arka.am

Flight Plan: Armavia approaches Public Council with a “rehab” offer

Experts of Armavia air company, Armenia's national carrier that declared bankruptcy on April 1, has submitted to the Public Council a “rehabilitation” plan to overcome the stagnation in the sphere of civil aviation in the country.

The rehab plan suggests that the 10,000 drams ($25) air tax be taken out of the ticket price, independence be granted to air companies in acquisition of aviation gasoline, and Armavia’s debts to the state budget be rearranged.

Public Council (PC) chairman Vazgen Manukyan believes the package of suggestions can also help to rehabilitate Armavia. He says it is possible to have several national carriers, one of which could be Armavia, but on a smaller scale.

Countering to Manukyan, PC member Vazgen Safarayn, chairing the Union of Domestic Manufacturers of Armenia, says for a few times already both state and private structures have made concessions to help Armavia, however the company’s fiscal policy is unclear up until now.

Another PC member Karine Danielyan, leading the Association for Sustainable Human Development, says Armenian Airways – the previous “national carrier” -- should not have been sold and privatized. She believes by doing so Armenia has lost small aviation, and is now losing big aviation. Danielyan says in terms of national security the state approach to this issue has to be as strict as possible, otherwise the crisis might lead to outflow of skilled pilots from Armenia parallel with the aggravation of the situation.

Armavia had sold tickets for flights months ahead till October 26 and has been returning tickets to those passengers since early April. Around 300 tickets have been refunded, the reimbursement process is ongoing.

This is the second national carrier to go bankrupt in Armenia, the first was Armenian Airways. Armavia owner Mika Limited company, belonging to Michael Baghdasarov, is registered in Jersey Island, recognized as an offshore zone by a government decree of the Republic of Armenia.

Armavia owes the state budget 24.2 billion drams (around $58 million). Its total debt to the local banks makes $35 million, bringing the company’s overall debt to around $93 million. PC’s Manukyan stresses that Armavia has a plan on how to pay back its bank debts, while the debt to the state budget is suggested to be exchanged for company stock.

Source: armenianow.com

Armavia presents plan of rehabilitation actions

Armenia's national airline Armavia that suspended flights from the 1st of April 2013 to begin the bankruptcy proceedings, submitted to the presidential Public Council a plan of actions which it says is designed to rehabilitate the company, according to Public Council chairman Vazgen Manukian.

He said Armavia suggests to abolish the state due of 10 000 drams included in the ticket price (the so-called air tax, to create equal conditions for all players at this market, to allow it to purchase independently aviation fuel, to restructure its debts to the government  and so on. Manukian said these proposals need to be examined profoundly.

A Public Council member Vazgen Safarian,recalled that both government agencies and private companies met very often the company’s wishes halfway, however, its financial policy is still unclear. He said the airline was granted monopoly to operate flights in several directions and the problems it encountered were caused primarily by its ineffective and poor marketing policies.

Another member of the Public Council, Karen Danielian, said from the point of view of national security the government’s approach to this situation should be strict. Danielian also expressed concern that while a solution is being sought many experienced pilots could find jobs outside Armenia.

After discussions the Public Council decided to ask the government to create several national airline and create equal conditions for all.

Source: arka.am

Armavia’s departure had no effect on tourism in Armenia, deputy minister claims

Suspension of Armavia’s operations and start of the bankruptcy procedure have not affected Armenia’s tourism sector, deputy minister of economy Ara Petrosyan told journalists Friday.

The government keeps in contact with air companies and tour operators and received no complaints so far, Petrosyan said.

“Other companies increased the number of their flights to Armenia and filled in the gap left by Armavia”, the deputy minister said.

Petrosyan also said that Armavia reduced frequency of its flights even before announcing itself bankrupt; hence the company’s departure has not provoked any crisis.

Earlier, the head of Armenia’s civil aviation department Artem Movsisyan reported the government was negotiating with air companies to reduce ticket prices. The only company who raised its prices (by 10,000 drams) was FlyDubai, he said.

According to Armenia’s civil aviation department, in the last two years Armavia accounted for 20-24% of the overall air traffic. The company’s share was even lower this year – 16% in January and February and only 12% in March.

Source: arka.am

Till now Armavia has returned money for tickets to 40 people

“Armavia” Air Company has returned money for more than 100-120 tickets to 40 people. This was noted by press service of “Armavia” in the interview with Armenpress.
“Only people included in the list of Nalbandyan 23 “Armavia” office have received the compensation.” press service informed. In order to receive compensation for the tickets of canceled Armavia flights citizens are still registering in the “Armavia” offices.
Armenia's national air carrier "Armavia" air company made a decision to suspend the flights starting from April 1, 2013. The air company informed Armenpress that during the last three years the owner of the company implemented funds from other enterprises belonging to him aimed at the development of the Air Company. The situation became very complicated and hence, a decision was made to suspend all the flights and start the bankruptcy procedure. "Armavia" Air Company expresses its gratitude to the whole its passengers, whom they worked with for 12 years.

Source: armenpress.am

Secrets of Armavia’s bankruptcy reveale

The Armavia airline owes all airports large sums of money and for that reason these airports do not allow it to operate flights, the former head of the Main Department of Civil Aviation Shahen Petrosian said at the meeting with journalists today. In his words, the airline made a decision about bankruptcy because of its debts.
Economist Harutyun Mesrobian said for his part that bankruptcy is the best way to get rid of one’s debts.
He also underlined the importance of having a strategy of the sector. “Every self-respecting state should have such a strategy and a policy based on it,” Mesrobian noted.

Source: aysor.am

Armavia CEO blames poor management for bankruptcy

The chair of the Public Council of Armenia named bad management, high prices and insufficient governmental involvement among reasons for Armavia air company’s bankruptcy.
As Vazgen Manukyan stated at the April 11 hearing on Armavia bankruptcy, on April 18, the Council will submit a final conclusion on the issue for the government’s consideration. As Manukyan noted, Armenia must have 2-3 competing air companies to curb monopoly and provide transparency in the sector.
Armavia CEO Norayr Beluyan, in turn, stressed that a national air company with a 51% governmental share is necessary in order to provide proper management. He further agreed with Manukyan as to poor management in Armavia.
The General Manager of Armenia-International Airports CJSC Marcelo Wende, in turn, noted that currently, many companies are interested in operating flights to Armenia, which will help decrease the prices. As he noted, forming a new company will take up to 1 year.
The head of Krunk Air Vladimir Poghosyan expressed readiness to get a certificate for flights operation. “We have enough funds to purchase 8 planes to form an air company within 2-month period,” he said.

Source:  panarmenian.net

Armavia pilots go on strike

Armavia Air Company has stopped flights. The airline told Zhamanak daily on Friday that the flights did not take place due to the fact that the pilots were on strike. The airline added that all workers received their salary except several pilots who went on strike in protest. Also, Armavia promises to give back ticket money to passengers.

Source: panorama.am

Armavia stops operating flights earlier than announced

Armavia airline has stopped its flights earlier than announced. The airline has not operated any flight from Zvartnots International Airport today, the airport’s spokesman Gevorg Abrahamian said.
“Passengers gathered in the airport. They then realized that Armavia will not operate anymore and went to the head office of the company, demanding explanations,” Gevorg Abrahamian told the correspondent of Aysor.am. Our attempts to get information from a representative of Armavia failed.
Let us remind you that Armavia’s press service announced today that Armenia’s national carrier, Armavia airline, stops operating flights starting from April 1.
“At the moment the situation is such that it is impossible to work any longer. For that reason a decision was taken to stop flights and file for bankruptcy. The company expresses its gratitude to all its passengers, with whom it has worked for 12 years and wishes success to them”, was said in the statement of the airline.

Source: aysor.am

Armavia files for bankruptcy, to cease operations

Armenian carrier Armavia Airlines filed for bankruptcy and will cease flights April 1. The airline said it failed to cope with the 2008 world economic crisis.
“An Armavia owner (the local businessman Mikhail Baghdasarov) supported the airline at the other businesses expense,” the carrier said in a statement. “But now it is impossible to continue this way.”
In Nov. 2012 Bagdhasarov put Armavia up for sale and local media reported the owner was considering potential buyers from Russia, Australia and Italy. Baghdasarov said there were no Armenian businessmen in a position to buy the airline.
The airline’s fleet includes two Airbus A320s, three Bombardier CRJ200LRs and three Boeing 737-500s. Armavia was the first to take delivery of the Sukhoi Superjet 100 in 2011 but later returned the aircraft to the manufacturer, saying it was unsatisfied with its operational results. Later the carrier refused to take delivery of second SSJ100. The Sukhoi Civil Aircraft company said the decision was based on the carrier's poor financial condition and not related to the aircraft’s operational performance.
Nearly half of the Armavia network is concentrated in Russia and Ukraine and the airline also performs flights to Europe, Middle East and North Africa.

Source: atwonline.com

“Armavia” company stops its flights

“Armavia” national aviation company stops its service since April 1. The message by the company tells about this. The message especially says:
“Now it is impossible to work. That is why we have decided to stop the flights and start the process of bankruptcy. The company thanks all its costumers, who were with us for those 12 years”.
Remind that “Armavia” was found on 1996 and started to fulfill flights since 2001. Then it had only one airplane. In 2003 it got 3 more planes and on 2006 seven more planes. On 2007 it already had 14 planes.

Source: times.am

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.

Source: arka.am

Armavia confirms bankruptcy rumors

Armavia Airline Company, which is Armenia’s national carrier, decided to suspend its flight as of April 1, the Company press release informs. 
“Over the course of three years, Armavia Company invested means from other businesses to maintain Armavia’s development. But the situation is such that there is no possibility to continue the work in this way, [and] therefore a decision is made to suspend the flights and to commence a process of bankruptcy.
“The company expresses its gratitude to all passengers, with whom it worked in all the twelve years, and wishes success.  
“The global economic and aviation crisis ‘destroyed’ many airlines,” Armavia’s press release reads in particular.

Source:  news.am

Armavia to return money for tickets

Armavia air company which has declared bankruptcy will return money for tickets, spokesperson for Armenian general department of civil aviation said.
Talking to Armenian News-NEWS.am correspondent, Nelly Cherhinyan said the company pledged to return the cost of tickets regardless of whether the tickets were bought from Armavia bracnhes or through ticket brokers.
On Friday Armavia decided to cancel the flights and announced decision to initiate bankruptcy proceedings.

Source:  news.am

Armavia cancels flights to Moscow, Krasnodar and Dubai

Armenia’s Armavia national carrier has already cancelled flights to Moscow, Krasnodar and Dubai. The company pledged to refund the price of the tickets.
“Armavia will possibly declare itself bankrupt due to the financial problems,” head of the General Department of the Civil Aviation Artyom Movsesyan earlier said, voicing skepticism over the government to extend the contract signed with the company.
The national carrier’s debts for securing air navigation services in Russia totals $288 000, a source in Russian aviation authorities told gazeta.ru.
Armavia issued a statement today, on March 28, announcing a decision to cease operations starting April 1, 2013.
“Armavia was established in 1996. It started operation of flights in 2001with only one aircraft. The company’s fleet was replenished with 3 planes in 2003, with 7 and 14 more planes in 2006 and 2007 respectively. However, many airline companies went bankrupt during the world economic and aviation crisis of 2008. Aviation is in need of continuous development. In the past three years, the owner of Armavia invested funds of other businesses to foster the development of the company. However, in the face of the current situation, the company resolved to halt the flights and start the bankruptcy proceedings. The company expresses gratitude to all its passengers and wishes them good luck,” Armavia’s press service said.

Source: panarmenian.net

Armavia airline stops operating flights starting from April 1st

Armenia’s national carrier, Armavia airline stops operating flights starting from April 1, the airline’s press service reported.
“At the moment the situation is such that it is impossible to work any longer. For that reason a decision was taken to stop flights and file for bankruptcy. The company expresses its gratitude to all its passengers, with whom it has worked for 12 years and wishes success to them”, is said in a statement of the airline.

Source: aysor.am

Armavia stops flights, prepares to file for bankruptcy

Armavia Air Company, Armenia’s national airline, will stop flights starting April 1, company’s press service reported.
“For now, the situation is that it is no longer possible to work and therefore it was decided to stop the flights and start the bankruptcy procedure. The airline thanks all its passengers with whom it has worked for 12 years and wishes them every success,” the press statement said.

Source: panorama.am

Gagik Tsarukian has no intention of buying Armavia

“The leader of BHK (Prosperous Armenia Party) Gagik Tsarukian has never had an intention of buying Armavia. This information is unfounded,” the correspondent of Aysor.am was informed by Tsarukian’s spokeswoman Iveta Tonoyan.
According to some press reports, Tsarukian intends to purchase Armavia. He tried to convince Armavia airline’s owner Baghdasarov to declare the company bankrupt and then sell it.
However, the government is against this move because the wage arrears will result in protests of company employees so the airline should be sold after solution of this problem.
It is also noteworthy that negotiations are now being conducted with two foreign companies: Vergin Atlantic and an Italian company, but Tsarukian’s intention impedes these negotiations.

Source: aysor.am

Hraparak: Tsarukian intends to purchase Armavia

“Hraparak” daily informs its readers about some details of the meeting between BHK Party leader Gagik Tsarukian and the owner of Armavia airline Mika Baghdasarov.
“Tsarukian intends to purchase Armavia. He tries to convince Baghdasarov to declare the company bankrupt and then sell it. But the government is against it because the wage arrears will result in protests of company employees so the airline should be sold after solution of this problem. By the way, negotiations are also being conducted with two foreign companies: Vergin Atlantic and an Italian company, but Tsarukian’s intention impedes these negotiations,” the paper writes.

Source: aysor.am