Azernews.Az

By Sabina Idayatova

Armenian media have reported that national airline Armavia plans to halt flights from April 1.

The company said that a decision had been made to halt flights and begin the bankruptcy filing procedure.

"The company thanks all of its passengers who used its services over 12 years of its operation and wishes them all well," it said in a statement.

The statement says that in recent years, the owner of Armavia invested in the airline from other businesses to support the carrier.

"However, today's situation does not allow to continue work this way any longer. Therefore, it is decided to suspend flights and begin the process of bankruptcy," the company said.

Chief of the Civil Aviation Department Artyom Movsesyan told media on Thursday that Armavia does not have sufficient funds to extend the agreement with the Armenian government expiring on April 22, as well as to fulfill its commitments, citing a possible bankruptcy due to the company's current financial woes.

Movsesyan noted that the government will make a final decision by April 22 whether to renew the contract with Armavia or announce a new tender for rendering its services.

The license for the operation of Armavia expired on March 14, however, the Armenian government has not yet decided on its extension.

Armavia airline was established in 1996. In 2005, all the shares were transferred to Mika Limited president Mikhail Bagdasarov, one of the biggest Armenian entrepreneurs. In November 2012, Bagdasarov announced his intention to sell the company because of the economic crisis as well as the losses from the operation of new Russian aircraft SuperJet.

At present, Armavia makes more than 100 flights a week to more than 40 destinations in 20 countries.

Three European airlines stopped flights to Yerevan last year.

Vice-chairman of the Armenian Association of Travel Agents, Yeghishe Tanashyan, stated in March that British Airways, LOT Polish Airlines and Latvian Air Baltic refused to fly to the Armenian capital.

According to Tanashyan, the decision was linked with high prices at Armenia`s Zvartnots airport, as well as non-free air space.