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ARMAVIA BANKRUPTCY DEAL ON PUBLIC COUNCIL'S AGENDA
22:36 ~U 11.04.13
Armavia's decision to suspend its flights amid a bankruptcy scandal
should not have come as a surprise to the Armenia's aviation
industries, the president of the Public Council has said.
At a Wednesday debate attended by members of Armenia's cabinet,
representatives of the national airline, Armenia International Airports
(which operated Armavia), the Union of Armenian Manufacturers and
Businessmen, as well as pilots and experts, Vazgen Manukyan noted
that poor management had caused the company's failure. He blamed the
scandal on the monopolistic positions of Armavia and the operating
company (which had set very high prices).
Addressing the meeting, Head of the General Department of Civil
Aviation Artyom Movisisyan said the Government has proposed three
possible solutions: to operate a government-funded air company with a
100 % state participation, to adopt the "the open sky" policy, and/or
enter into contractual relations with a private company. "That's a
big competition, but an Armenian air carrier's existence is called
into question. In case we decide to operate a state [company], we
will need sponsorship," he said.
Manukyan noted in response that the core issue is whether or not
to operate a national airline. Armavia CEO Norayr Manukyan said his
preferred option is the state's cooperation with an airline owned by
several companies (vs. one monopoly).
"Armavia can be competitive in case the majority of its shares are
purchased by the state," he said, asking the participants to consider
his proposal. "Armavia, as a brand, still exists, and it can be saved."
Speaking further on the topic, General Manager of Armenia International
Airports Marcello Wende said he is more concerned about the timeframes
as the airport's more active season is drawing near. He proposed
instead the "open sky policy".
"We now have a chance to implement the 'open sky' policy. Many wish
the 'open sky', but it is necessary to offer such an opportunity,
which will automatically bring the prices down, attracting more and
more tourists to Armenia. That's a temporary solution, so we are
asking the Government to take it into consideration," said he.
Wende added that a decision to operate a national air carrier should
cause a state to have its own investment in order to be aware of
the amount of money to be spent. He brought the example of Argentina
where the government loses daily a sum of $3 million for the national
airline.
"We are for a national airline. We can have two or three, but the
government must be confident while having its participation," he said.
Director of Armenia International Airport Juan Pablo Gechijian
corrected the remark, saying that the company, which offered Armavia
considerable discounts in the past couple of years, is not pursuing
monopolistic policies.
The proposal met pilots' dissent to which Manukyan agreed, saying
that Armenia cannot give up the idea of having its national airline.
Grogory Hayrapetyan, a pilot attending the meeting, remembered
150-seat aircrafts carrying a double number of passengers in the
late 1980s after the disastrous earthquake and the Armenian pogroms
in Baku. "Heaven forbid, but if you think foreign airlines will do
that instead of us, you are mistaken. We have a good school and we
are for having the Armenian aviation," he said.
CEO of the private airline Krunk Air, Vladimir Pohgosyan, said at
the end that his company is ready to invest 750 Euros. He said they
can import an A-340 aircrafts later this month and bring another
two A-320 airbuises later. Poghosyan further expressed the company's
readiness to hire 450 former employees of Armavia, adding that they
will be able to operate flights in two months, after obtaining the
Government's consent.
Armenian News - Tert.am
22:36 ~U 11.04.13
Armavia's decision to suspend its flights amid a bankruptcy scandal
should not have come as a surprise to the Armenia's aviation
industries, the president of the Public Council has said.
At a Wednesday debate attended by members of Armenia's cabinet,
representatives of the national airline, Armenia International Airports
(which operated Armavia), the Union of Armenian Manufacturers and
Businessmen, as well as pilots and experts, Vazgen Manukyan noted
that poor management had caused the company's failure. He blamed the
scandal on the monopolistic positions of Armavia and the operating
company (which had set very high prices).
Addressing the meeting, Head of the General Department of Civil
Aviation Artyom Movisisyan said the Government has proposed three
possible solutions: to operate a government-funded air company with a
100 % state participation, to adopt the "the open sky" policy, and/or
enter into contractual relations with a private company. "That's a
big competition, but an Armenian air carrier's existence is called
into question. In case we decide to operate a state [company], we
will need sponsorship," he said.
Manukyan noted in response that the core issue is whether or not
to operate a national airline. Armavia CEO Norayr Manukyan said his
preferred option is the state's cooperation with an airline owned by
several companies (vs. one monopoly).
"Armavia can be competitive in case the majority of its shares are
purchased by the state," he said, asking the participants to consider
his proposal. "Armavia, as a brand, still exists, and it can be saved."
Speaking further on the topic, General Manager of Armenia International
Airports Marcello Wende said he is more concerned about the timeframes
as the airport's more active season is drawing near. He proposed
instead the "open sky policy".
"We now have a chance to implement the 'open sky' policy. Many wish
the 'open sky', but it is necessary to offer such an opportunity,
which will automatically bring the prices down, attracting more and
more tourists to Armenia. That's a temporary solution, so we are
asking the Government to take it into consideration," said he.
Wende added that a decision to operate a national air carrier should
cause a state to have its own investment in order to be aware of
the amount of money to be spent. He brought the example of Argentina
where the government loses daily a sum of $3 million for the national
airline.
"We are for a national airline. We can have two or three, but the
government must be confident while having its participation," he said.
Director of Armenia International Airport Juan Pablo Gechijian
corrected the remark, saying that the company, which offered Armavia
considerable discounts in the past couple of years, is not pursuing
monopolistic policies.
The proposal met pilots' dissent to which Manukyan agreed, saying
that Armenia cannot give up the idea of having its national airline.
Grogory Hayrapetyan, a pilot attending the meeting, remembered
150-seat aircrafts carrying a double number of passengers in the
late 1980s after the disastrous earthquake and the Armenian pogroms
in Baku. "Heaven forbid, but if you think foreign airlines will do
that instead of us, you are mistaken. We have a good school and we
are for having the Armenian aviation," he said.
CEO of the private airline Krunk Air, Vladimir Pohgosyan, said at
the end that his company is ready to invest 750 Euros. He said they
can import an A-340 aircrafts later this month and bring another
two A-320 airbuises later. Poghosyan further expressed the company's
readiness to hire 450 former employees of Armavia, adding that they
will be able to operate flights in two months, after obtaining the
Government's consent.
Armenian News - Tert.am