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ArmeniaNow: New airline enters Armenian market

By Suren Deheryan
ArmeniaNow reporter

A new airline made its first flight from Yerevan Zvartnots Airport last week.

Armenian International Airlines started service that includes Paris and Frankfurt, picking up routes previously maintained by the State-owned Armenian Airlines.

Flights available on Armenian Airlines have been severely limited since European noise restrictions imposed last April virtually cut off the State airline’s connection to Europe, as outdated aircraft failed to meet new standards.

But the most damaging blow to the airline came when its leased Airbus blew an engine last January and the State could not afford repairs and had to return it to its parent company.

Armenian Airlines currently is in debt $19 million.

Armenian International Airlines was founded by businessmen Gagik Tsarukyan, head of
Armenia’s Multi Group company, Hrayr Hakobyan and Levon Baghdasaryan, who was named president of the company.

Having taken over AA’s European service, Tsarukyan says AIA would like further involvement.

“If Armenian Airlines agrees to become part of our company we will pay all their debts,” says Tsarukyan, “any business can reach success if it is completely private.”

But Armenian Airlines’ executive director Arsen Avetisyan says AA will continue as the State’s fleet.

“Armenian Airlines won’t declare bankruptcy,” Avetisyan says. “It must continue functioning and the company will do everything possible for better developing. We will find possible cooperation with AIA which will be seen soon.”

Chief shareholder Tsarukyan says the goals of AIA are “serious” and that the new airline will expand to five carriers before next May.

“Of course, it’s very hard business,” says Baghdasaryan, “especially after September 11 this business experienced a lot of difficulties. However, according to calculation we made it will be profitable for us.”

AIA’s Airbus-320 can carry 156 passengers and 19 tons of cargo.

Flights from Yerevan to Paris are on Mondays and Thursdays and a round-trip fare is $560. Yerevan-Frankfurt goes on Saturdays and also costs $560.S

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