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"Heritage": further strategy of non-government three to be determined at the beginning of February

Uruguayan President: Let's not forget about unrecognized Armenian Genocide

Nikolay Bordyuzha: CSTO cannot give military response to escalation of tension along contact line of Azerbaijani-Armenian troops

Expert: Israel's policy on Armenian Genocide will not change

Armenian policeman accused of robbing houses of Iranians living in Yerevan

Analyst: It is the military-political balance rather than the Russian base that defends Armenia against Turkey

Government of Armenia says they have fulfilled all the demands of salespersons, but they continue to rally

Armenian expert: The key reason why the Armenian authorities are behaving like ostriches is that their boss is going to leave them

Parliamentary opposition suggests convoking special parliamentary session on turnover tax law

Prime Minister: Armenia is preparing to resist global economic war

VimpelCom Ltd., announces the launch of its "Make Your Mark" initiative

Fatih Akin's "The Cut" to be screened in Armenia and Russia starting from Feb 19

Expert: Turkey will try to make up a format for its participation in events to be organized by Armenia to commemorate 100th year of Armenian Genocide

Political expert: 2015 will see no breakthrough in Nagorno-Karabakh peace process

Armenian expert: Permyakov case will be used as pretext for planned withdrawal of 102nd Russian military base from Armenia

Expert: Growing tension in the Karabakh conflict zone bears no relation to upcoming centennial of the Armenian Genocide

France-Artsakh Friendship Circle supports OSCE Minsk Group's charges against Azerbaijan

James Warlick: "The reported use of 'drones' above or across the Nagorno-#Karabakh line of contact is a provocation"

One more concert on sidelines of Edgar Oganesyan-Fest in Yerevan

Criminal case opened over death of soldier in Yerevan

President of Turkey calls for opening archives and submitting Genocide issue to historians

The Pan-Armenian Declaration On The 100th Anniversary Of The Armenian Genocide Promulgated

New appointments at VTB Bank (Armenia)

Armenian President: Denial of Armenian Genocide turns present-day Turkish authorities into accomplices to the crime committed by Young Turks

President Serzh Sargsyan attends opening of Komitas Museum-Institute

Spokesman of Armenian DM: I will not be surprised if tomorrow Azerbaijan destroys an Armenian intercontinental ballistic missile

Action of protest held in front of OSCE Office in Yerevan

Tension on Line of Contact is unlikely to develop into large-scale military operations, Azeri expert says

Well-known actor Vardan Petrosyan sentenced to 5 years in jail

Armenian Defense Ministry: Two Armenian servicemen wounded as a result of Azeri sabotage attack

Small business representatives heading towards president's residence protesting against Law on Turnover Tax

Azeri raiders convicted in Artsakh apply to Court of Appeal

Gevork Kostanyan: Armenian people had to protect their own history against distortion at ECHR

Haaretz: President of Israel touches upon Armenian Genocide

Francois Hollande calls on Turkey to dispel stereotypes and recognize Genocide of Armenians

Armenian armed forces rebuff a new Azeri sabotage attack on the border in Tavush region

Armenian delegation to PACE voices issue of Armenian Genocide in Ottoman Turkey

Small HPPs constructed on rivers to get green passports

Verdict on "Perincek vs. Switzerland" case will be announced within 6-8 months

Official Stepanakert thinks extradition of Dilham Askerov may not be debated

OSCE Minsk Group co-chairs voice their concern over growing tensions in Karabakh conflict zone

Eduard Sharmazanov: "OSCE MG's latest statement was unprecedented, as the mediators took Baku down a peg for the first time ever "

President of Armenia: "Artsakh's right to live in freedom is undisputable"

Artsvik Minasyan: Any integration is senseless for unreformed economy of Armenia

Armenia's Energy Ministry plans to sell part of Nairit Plant's assets

Armenian Defense Minister: Transfer of Valery Permyakov to Armenian law-enforcers was not discussed at the meeting with Arkady Bakhin

Expert: Armenian law-enforcers are not involved in Permyakov case investigation to full extent

British Film Festival 13th Love Edition to kick off in Yerevan on Feb 14

Changes in Russia-Middle East relations cannot but affect Armenian-Russian military strategic cooperation

Armenian FM: Armenia and Iran have no problems concerning their joint projects

Open skies policy to reduce prices of flights to Armenia by 10-50% on the average: CEO of National Competitiveness Foundation of Armenia

  • by Gayane Isahakyan

  • Wednesday, December 11, 01:20

The open skies policy will reduce the prices of flights to Armenia by 10-50% on the average. This will allow the country to additionally increase the GDP by 1.5% or $0.3-0.4 bln AMD per annum, Arman Khachatryan, CEO of the  National Competitiveness Foundation of Armenia, said at a press  conference on Tuesday.  

This indicator is mentioned in the program on ensuring provision of  competitive and longlasting air services in Armenia elaborated on the  basis of a joint survey by McKinsey&Company and the National  Competitiveness Foundation of Armenia. Khachatryan thinks that  Armenia will be able to reach that target in 3-4 years. "The conduct  of the open skies policy will lead to growth in the country's  commodity turnover and will increase the inflow of tourists", he  said. 

In particular, passenger operations are expected to rise by 20-25%,  he said. In the meantime, 18- 23 thsd well-paid jobs will be created  in the aviation sector.  

In the context of the new concept "at least one cost-effective air  company" will be launched in spring 2014. Khachatryan said that the  air ticket prices in that company will be low, and the company will  make flights to 10 cities of Europe. He failed to specify who is the  founder of the company, whether the state has a share in it and  whether the company has already been granted a license. 

Khachatryan pointed out that in Armenia air ticket prices are by 60%  higher than in the neighboring countries due to the restricted  geography of flights and low competition in the market. He thinks  that the open skies policy implies full liberalization of the  aviation sector. Moreover, the market will be liberalized for not  only foreign but also local air companies. "We suppose that by 2016  the number of foreign and local air companies in Armenia will range  from 40 to 50", he said. 

Air Armenia company appeared on the Armenian air market in Oct 2013  causing a significant drop in prices. Transporting cargoes since  2003, Air Armenia carried out its first passenger charter flight to  Rostov- on-Don on Oct 3 and the first regular flight to Moscow on Oct  27. The company has two planes: Boeing 737-500 and Airbus 320. 

The company's Executive Director Arsen Avetisyan told ArmInfo earlier  that it is inadmissible that local air carriers face restrictions,  while foreign companies enjoy open skies. He explained that it was the recommendation of the Government's advisor, McKinsey & Company,  who believes that in order to be eligible to provide air services, a  company should have a capital of at least $25mln and enough free  funds to operate at least five planes within three months. 

But, according to Avetisyan, in order to be able to do it, a company  should have a capital of no less than $60mln. This requirement seems  absurd to him as a company cannot have five planes unless it is  allowed to fly: no single leasing company will give it a plane –  whatever its financial status is – unless it has a license to fly.  So, Avetisyan sees in this recommendation an attempt to debar  national air companies from air services in Armenia and to  artificially restrict their activities so as to curb their  development.

In Jan-Oct 2013 1.5mln people used air services in Armenia (1.8% less  than a year before).

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