Financial Restructuring ‘Required’ for Air Armenia

YEREVAN (Arka)—The management of Air Armenia made a decision about financial restructuring and changing the flight schedule before Dec. 20, the company’s press office reported.

The company’s press office blamed media allegations of problems in the company for its 80% reduction in sales.

“It is currently becoming impossible to carry out flights,” the report says.

The company will focus on the most in-demand destinations and will try to attract new funds, recover its two A320 planes that are in maintenance now and resume flights as per the schedule from December 20, says the report.

The company made this decision after a year of operations in the Armenian market and passenger flights to Russia and Europe.

“This year was full of both achievements and unpleasant surprises when attempts were made to hamper the company’s operations as the only Armenian air carrier and creating favorable conditions for overseas air companies,” says the report.

Apart from this, the statement by the Russian state corporation of air traffic about suspension of cooperation with Air Armenia caused serious financial damage to the company and harmed its prestige, says the report.

The report says the allegations created panic among passengers, debtors, and creditors. Many passengers returned their tickets, creditors canceled earlier agreements and demanded their money back, and debtors refused to pay costs of previously purchased tickets.

Apart from this, the company is now using only one aircraft for all of its flights as the others are undergoing technical maintenance in the Netherlands.

The company expresses its gratitude to its faithful passengers and partners and apologizes for the inconvenience.

Air Armenia is the only domestic company in the market of air transportation. Armenia’s previous national carrier Armavia went bankrupt in April 2013.