Armavia national air carrier of Armenia has adopted a decision to suspend flights starting April 1 2013, the company's press-service told ArmInfo.
Earlier on Thursday, Head of the Chief Civil Aviation Department of Armenia Artyom Movsesyan said that the Armenian Government is not going to obtain a stake in Armavia. He said that the company's current credit standing may push it to bankruptcy. Movsesyan said that the company's ten-year contract with the Government expires on Apr 22 2013. "I don't think that a new contract will be signed as Armavia does not have enough funds for meeting its obligations. He
said that the Armenian authorities are considering how to further develop civil aviation: to create a state-owned air company, to invite a private operator, to liberalize the market or to adopt the open sky policy. He said that no single foreign air company has yet applied for the right to provide civil air services in Armenia.
Bagdasarov set up Armavia in 1996 and. In 2005 pressured by the Armenian tax authorities, S7 gave the company back to Bagdasarov. Today Armavia carries out over 100 flights to over 40 destinations in 20 countries. As of today the total debt of the national air carrier of Armenia, Armavia, is no more than $50mln, the owner of Armavia, President of Mika Limited Mikhail Bagdasarov said in an interview with ArmInfo. He said that the reports that the company owes $127mln
are not true. "Simply we would like to sell it for as much, and this sum includes not only our debts but also investments, profits and my dividends," Bagdasarov said.