YEREVAN (ARKA)—Bonds worth a total of $68.6 million have been invested in Air Armenia by East Prospect Fund, a stockholder of the company, the press office of Air Armenia reports.
According to the report, the funds are now owned by Air Armenia, which can now administer them at its discretion. The transaction has helped the air company acquire securities, and, at the same time, increased its capital.
The deal means that Armenian’s sole airline company now has a hedge fund against bankruptcy and other financial risks, says the report.
Sirakan Hambartsumyan, head of marketing for Air Armenia, told ARKA that the company is not carrying out flights, but is planning to start its air services next summer. The company had previously said in March that it would start air operations in early May 2015.
Hambartsumyan said that the company currently has no aircrafts, as all airplanes were returned to their owners.
“After investments are attracted in full, the air company will start negotiations with aircraft owners. It will most probably be Airbus A320. But no decision has been made yet. The talks are under way, and there is a business plan we follow,” Hambartsumyan said, commenting on new aircraft purchases.
In late October of 2014, the air company’s administration decided to take drastic steps to restructure its finances and change flight schedules, stopping operation of all flights. Air Armenia said earlier that information released by media sources about the company’s problems led to a 80-percent fall in sales, which contracted earnings to a critical minimum.
East Prospect Fund, a new investor and shareholder of 49% of Air Armenia’s stock, promised to invest $30 million in the company and to get new aircrafts to increase the number to five.
After Armavia, Armenia’s national airline company, began proceedings to declare bankruptcy on April 1, 2013, Air Armenia, which only operated cargo charter flights, began operating commercial flights.
East Prospect Fund is a licensed financial organization registered in the British Virgin Islands. The fund’s assets are estimated by its representatives at $2.5 billion.