Newsfeed

VTB Bank (Armenia) Contributing to the Launch of Exposition "Great Victory Gained by Unity"

Azerbaijani Vice Prime Minister: Russia behind Armenia's Actions

Vahan Babayan: Rise in electric power tariffs in Armenia to spark public discontent

Exposition "Great Victory Gained by Unity" Launching in Yerevan

Ecologists and Lydian International Representatives Discussing Amulsar Mine Project

Defence Ministry: Those Responsible for the Death of Cadet Haykaz Barseghyan to be Punished to the Fullest Extent of Law

Official Stepanakert waiting for world community to respond to trial against Armenian captive in Baku

Transparent elections in Karabakh to contribute to international recognition of NKR, U.S. observer says

The Man Who Talks to Iron

ANCA urges U.S. to sign trade and investment framework agreement with Armenia

Serzh Sargsyan meets with U.S. senators and OSCE MG co-chair in Washington

Stepanakert: Elections essential for maintaining stability in region and for just and peaceful settlement of conflict between Azerbaijan and Nagorno Karabakh

ACBA-Credit Agricole Bank Planning to Finish 2015 with 3.8 bln AMD Profit

Beeline holds #70thousandthanks campaign in Armenia

ACBA-CREDIT AGRICOLE BANK intends to expand its presence in Yerevan and other large cities of Armenia

ACBA-CREDIT AGRICOLE BANK's new branch to focus on financing and serving SME entities

1st and 2nd Issues of Foreign Currency Denominated Bonds by ARMSWISSBANK Listed at NASDAQ OMX Armenia

Armenia: Greece and VFS Global Opening a Center on Visa Applications for Greece

Orange sums up results of "To Cannes 2015" video-contest

VivaCell-MTS network restarts operation after the outage

Mass Media: Former MP from Prosperous Armenia Party detained on suspicion of assassination planning

ACBA-Credit Agricole Bank ranked second in terms of branch network

Head of RESO stresses several types of insurance that will shortly enjoy higher demand

Insurer: Application of social packages in private sector will increase demand for health insurance

Insurer: Demand for motor third party liability insurance not to decline even if it suddenly becomes voluntary

Insurer: Bonus-Malus system is still operating to the prejudice of insurance companies

Prime Minister of Armenia supports territorial integrity of Georgia

Foreign Ministry of Georgia summons Armenia's ambassador over meeting of Armenian and South Ossetian parliament speakers

Spectrum held a roundtable discussion "NATO and the Changing Security Environment"

Armenia: Greece and VFS Global Opening a Center on Visa Applications for Greece

Jerzy Marek Nowakowski: Poland ready to contribute to Armenian-Turkish normalization

Vigen Sargsyan: Edogan's "Gallipoli Plan" was a Complete Failure

Ukraine not Recognizing Nagorno-Karabakh Parliamentary Elections

Georgia not Recognizing the Election Held "in Occupied Azerbaijani Territories"

US analyst: Ukrainian crisis and annexation of Crimea have complicated Karabakh peace process

Sabine Freizer: Maintaining dialogue with Armenia, U.S. and EU should not forget that it is Russia's periphery

US expert: South Caucasus does not face the threat of 08.08.08 war scenario or the Crimean scenario

NKR CEC: Free Motherland Party sweeps parliamentary elections

Oppositionist: Parliamentary elections in NKR highly competitive

Ersi Koi: Elections in NKR meet international standards

European Parliament member: Electoral process in Nagorno-Karabakh took place in line with international standards

Members of Founding Parliament set free

Arkady Ghukasyan: No violations registered during parliamentary elections in NKR

Ankara indignant at initiative to teach genesis of Armenian Genocide at German schools

Preliminary data: Free Motherland Party wins parliamentary elections in Nagorny Karabakh

Hovhaness Sahakyan: "Parliamentary elections in Nagorny Karabakh show that international recognition of NKR is near at hand"

Anelik Bank's loan and deposit portfolios considerably grew in Q1 2015

Exclusive

Armen Rustamyan: From now on, Armenian Genocide is an issue on international agenda

Tigran Jrbashyan: I think all this is a trial that will make the country embark on “rehabilitation procedures”

Yevgeny Satanovsky: Turkey uses Islamic State to destroy Kurds

Eduard Sharmazanov: We have presented our agenda to the world and the progressive humanity has acclaimed it

Gayane Novikova: The South Caucasus states are trapped by the Ukrainian crisis

Ashot Manucharyan: Russia Does Not Need Parliamentary Armenia

Samvel Farmanyan: Turkey will recognize Armenian Genocide and will do it under pressure of its own public

Yana Amelina: "Weapon strategy" of Moscow will stop only after world geopolitical balance is restored

Vardan Voskanyan: Iran assumes functions of "a gendarme" to remove chaos in Middle East

“Angels” and “Demons” of Film Director Hovhannes Galstyan

Andrey Areshev: Karabakh-related humanitarian initiatives from Russia could be useful

Sevak Sarukhanyan: Concerns about possible emergence of ISIS in Azerbaijan focus Tehran's attention on Baku

Alexander Zinker: Israel has never before been so close to recognition of Armenian Genocide

Andrey Yepifantsev: Russia and Armenia have what to keep silence about

Promise to convict Permyakov at 102nd Russian military base in Armenia is already a big gesture of Russia

Ruben Safrastyan: Turkey fears consequences of Armenian Genocide denial

Serious trends of geopolitical changes in South Caucasus lead to clashes and redrawing of borders

Armenian Men are Also Eager to Look Young

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).

Send to a friend

To (e-mail)


Your name


Message


Comments

View comments (0)
  • READ ALL COMMENTS
  • POST A COMMENT

Be first to comment on this article

* Indicates required fields