Tweet
ARMAVIA'S BANKRUPTCY RESULTS OF MONOPOLY, MISMANAGEMENT
15:05 ~U 10.04.13
Shahen Petrosyan, ex-head of General Department of Civil Aviation of
Armenia, has one answer to a question about the bankruptcy of Armavia
airline, which had an annual profit of $10m.
According to him, the "artificial bankruptcy" was the result of
monopoly and, later, of mismanagement.
"With passenger traffic growing yearly, announcement of bankruptcy
shows that the airline was arbitrarily privatized. Mismanagement
resulted in bankruptcy for another to become its owner," Mr Petrosyan
told journalists.
In 1998, Armenian Airlines and Araks airline were privatized by
Armavia, which had no assets.
With respect to mismanagement, Mr Petrosyan linked it with relations
between Armavia and Sibir airlines. The former placed its control
stock at the latter's disposal. Later it was re-purchased at a lower
price and became taxable.
The bankruptcy of Armenia's national air carrier is harm to the
country's national security.
"We had a second air route, which, when necessary, assisted the other
airline. If the second had been registered, it had done it and the
prices had not been raised," he said.
Armenia would benefit if it had two air carriers. "Entering this market
is not so easy, but the government would act right if it created one
of them. A good company could be established with a capital of $50
m to $100m. It would later turn into an open corporation, with the
second to remain a private company," he said.
Isabella Muradyan, Co-Chair of the Air Communication Subcommittee,
Public Council of Armenia, disagrees with Mr Petrosyan.
With respect to the current situation, she objects to strategic
monopolies in the country. "Be it civil aviation, Zvartnots or any
other facilities, they must have at least 26%," she said. Ms Muradyan
does not think there was a clear tendency to Armavia's bankruptcy
because the air carrier's problems have been spoken of since last year.
Ms Muradyan pointed out legal problems. "Armenia is the only state
that has no air law. In this case, illegal relations are practiced,
which caused Armavia's present situation," she said.
Management expert Harutyun Mesrobyan shares Ms Muradyan's opinion.
"Armenia's strategic facilities began falling into decline in 1991 -
the railway, chemical production, electronic industry. It is surprising
that aviation meant life for us, but it saw the same attitude as the
railway and others," he said.
He proposes an audit to find out if Armavia can be revitalized or a
new airline has to be created.
The other speakers are for the first option.
Armenian News - Tert.am
From: Baghdasarian
15:05 ~U 10.04.13
Shahen Petrosyan, ex-head of General Department of Civil Aviation of
Armenia, has one answer to a question about the bankruptcy of Armavia
airline, which had an annual profit of $10m.
According to him, the "artificial bankruptcy" was the result of
monopoly and, later, of mismanagement.
"With passenger traffic growing yearly, announcement of bankruptcy
shows that the airline was arbitrarily privatized. Mismanagement
resulted in bankruptcy for another to become its owner," Mr Petrosyan
told journalists.
In 1998, Armenian Airlines and Araks airline were privatized by
Armavia, which had no assets.
With respect to mismanagement, Mr Petrosyan linked it with relations
between Armavia and Sibir airlines. The former placed its control
stock at the latter's disposal. Later it was re-purchased at a lower
price and became taxable.
The bankruptcy of Armenia's national air carrier is harm to the
country's national security.
"We had a second air route, which, when necessary, assisted the other
airline. If the second had been registered, it had done it and the
prices had not been raised," he said.
Armenia would benefit if it had two air carriers. "Entering this market
is not so easy, but the government would act right if it created one
of them. A good company could be established with a capital of $50
m to $100m. It would later turn into an open corporation, with the
second to remain a private company," he said.
Isabella Muradyan, Co-Chair of the Air Communication Subcommittee,
Public Council of Armenia, disagrees with Mr Petrosyan.
With respect to the current situation, she objects to strategic
monopolies in the country. "Be it civil aviation, Zvartnots or any
other facilities, they must have at least 26%," she said. Ms Muradyan
does not think there was a clear tendency to Armavia's bankruptcy
because the air carrier's problems have been spoken of since last year.
Ms Muradyan pointed out legal problems. "Armenia is the only state
that has no air law. In this case, illegal relations are practiced,
which caused Armavia's present situation," she said.
Management expert Harutyun Mesrobyan shares Ms Muradyan's opinion.
"Armenia's strategic facilities began falling into decline in 1991 -
the railway, chemical production, electronic industry. It is surprising
that aviation meant life for us, but it saw the same attitude as the
railway and others," he said.
He proposes an audit to find out if Armavia can be revitalized or a
new airline has to be created.
The other speakers are for the first option.
Armenian News - Tert.am
From: Baghdasarian