Air Armenia, the sole Armenian air carrier, has suspended the passenger operations till December 20, 2014, the company's press release says.
According to the source, the statement of the Russian Federal Air Navigation Service (Rosaeronavigatsia) that starting from September 21 Air Armenia will be forbidden to make flights to Russia has reduced the air ticket sales by 60%. Rosaeronavigatsia's statement was disseminated by the Russian media outlets on September 11. This statement has caused serious problems in Air Armenia. Armenian media outlets have also disseminated that statement and this has affected the company's image and caused financial losses. The misinformation published by the Arajin Lratvakan portal has worsened the financial situation and decreased the sales by 80%. The creditors and debtors are panic-stricken.
Numerous passengers have started returning their tickets and many of them have stopped using the Armenian air carrier's services. All the creditors demand the funds and refuse the earlier coordinated schedules of payments, and the debtors refuse to pay for the tickets, which have already been sold. "As a result, the company's revenues have critically dropped and it is impossible to make passenger operations at the moment", says the press release. In the current situation, the company's management has taken a decision to carry out financial restructuring and to change the schedule of flights before December 20 with the focus on most demanded destinations. "It is envisaged to attract funds, to retrieve Air Armenia's two Ђ320 planes, and to launch all the flights earlier planned in the winter schedule starting from December 20", the source says.
Air Armenia was founded in 2003. At that time it carried out cargo transportation by air. Since October 2013 (i.e. since Armavia national air carrier's bankruptcy) it has been the sole Armenian air carrier that makes passenger operations. Air Armenia has two Airbus 320s and one Boeing 737-500. Two planes of Air Armenia are currently being modernized in Holland.