Newspaper: Government of Armenia has not adopted any decision on Armavia Company's license

• Thursday, March 14, 12:33

Government of Armenia has not yet decided whether to extend Armavia national air career's license that expires on March 14 or not, a local Orakarg newspaper writes.

"The Government has not yet decided whether to liberalize the market of air transportation or extend the monopoly of Armavia Company," the paper writes. Under the contract made on March 14 2003, the Government has granted Armenia an exclusive right to make flights to certain routes. As the contract term expires, the Chief Civil Aviation Department of Armenia must offer the Government to either extend the monopoly of the company or announce a new contest for air transportation on the given routes, which will liberalize the market of air transportation.

"In the meanwhile, there is no draft decision by the above Department on the agenda of the Government for March 14," the paper writes.

In line with the Finance Ministry's strategic development program 2013- 2025 Armenia will switch to "open skies" policy by 2025.   This implies measures to increase the number of state-funded flights, to liberalize passenger rail travel, to create new and to modernize existing tourist infrastructures outside Yerevan, to attract well-known foreign hotel brands. As many as 2.3mln people may visit Armenia in 2025 as a result against 846,300 in 2012. 

Armavia national air carrier was founded in 1996 and meets IATA standards.  In 2005 the shares of Armavia were transferred to  Mika Limited President Mikhail Baghdasarov. Armavia makes over 100 flights in a week to over 35 destinations in 20 countries.