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Andre Andonian's New "Soundtrack" For Armavia

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  • Andre Andonian's New "Soundtrack" For Armavia

    ANDRE ANDONIAN'S NEW "SOUNDTRACK" FOR ARMAVIA

    They write and speak about the oligarchic economy everywhere and
    all the time. There is no lack of calls for fighting the economic
    crisis and the economic barriers. The authorities sometimes cannot
    help uttering trite expressions like liberal, competitive, equitable
    economy, support to SMEs.

    On June 6 the government "produced" the protocol decision with the
    beautiful title "Concept of Liberalization of Air Transportation". Its
    equally beautiful text starts with a paragraph written with a touch of
    penitence: "... the Government of the Republic of Armenia has designed
    a tailored policy for each period, authorizing state-run and private
    airlines to operate the Armenian air routes and always arrived at the
    idea of having one carrier. The purpose of similar decisions was to
    ensure a steady position for the Armenian carrier and implement the
    ideology of having an Armenian carrier..." And since the agreement
    signed between Siberia Airlines and Armavia in 2003 for ten years has
    expired, the government sighed with relief and eventually got rid of
    that strangling agreement and immediately got down to liberalization
    of the sunny sky above Armenia.

    The government has adopted and continues to adopt dozens of such
    decisions which never change anything in our lives. At best, one could
    enjoy the content of the text decorated with kind wishes to which
    we will come back later. Let us dwell on two interesting pieces of
    information which seem to have nothing to do with the abovementioned
    decision.

    A few days ago the Russian deputy minister of manufacturing and
    trade Yu. Slyusar officially announced suspension of state funding
    of Sukhoi SuperJet New Generation, the funds of 130 million dollars
    will be directed at refurbishment and enhancement of security of
    SSJ-100. The deputy minister also said that the future of the Russian
    aircraft industry depends on the success of SuperJets.

    The other interesting news is Armavia's statement dated July 27 that
    the process of bankruptcy has been suspended to discharge debts.

    Hence, after three months of deliberations and anxiety the company
    has finally found its bearings or was helped to orient.

    The orientation is that it will return to the sunny and liberal sky
    of Armenia but will have to follow the rules of the game outlined in
    the abovementioned program of government. What does SSJ-100 have to
    do about it?

    The explanation of Armavia's crisis over the last few years is the
    sale of two SSJ 100 jets imposed on Armavia. The crash of SSJ100 in
    Indonesia in 2012 and in Iceland in 2013 have softened the relations
    between Armavia and the aircraft company whose CEO Mikhail Pogosyan
    arrived in Yerevan on July 18 to sign a memorandum of cooperation
    with the National Academy of Sciences.

    Unfortunately, the official sources are silent whether he took part
    in the ceremony of signing of the agreement between the National
    Competitiveness Foundation and McKinsey & Company. The latter will
    develop the competitive and continuous air transportation plan.

    (Ostensibly, the plan will proceed from the June 6 decree of the
    government. But since the probability that two busy officials,
    Andre Andonian of McKinsey & Company and Michael Poghosyan of the
    United Aircraft Corporation would appear in Yerevan simultaneously
    is 1/(365x365) which equals 0,000007506098705197973, then we would
    commit a sin that is equally close to zero if we assumed that the
    abovementioned plan will take into consideration Superjet and salvation
    of the Russian aviation.

    Hence, Armavia will be returned to the game under new rules of the
    game but with old values, mindset and players.

    Aghassi Ivanyan 16:52 16/08/2013 Story from Lragir.am News:
    http://www.lragir.am/index/eng/0/economy/view/30714

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