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CREDITOR BANKS AGREE TO WRITE OFF PENALTIES AND FINES OF ARMAVIA
YEREVAN, May 8./ARKA/. The creditor banks had agreed to write off
the penalties and fines of Armenia's national air carrier, Armavia
company, Transport Communications officer Isabella Muradyan said in
an interview with ARKA news agency.
Muradyan is a deputy chief of Armenia's Public Council of Air and
Transport Communications.
Armavia company has stopped operating flights on 1 April and declared
bankruptcy.
"We are aware that the banks agreed, and penalties were written off.
It refers to the debt amount only, which is covered by the air
company's pledged property," she clarified.
According to Russian "Kommersant" daily newspaper, Armavia's debt
to some Russian banks, airports and Rosaviation stands at nearly
$25 million. Besides the Russian banks, the company owes money to
several large Armenian banks. Particularly, Armavia owes several
million rubles to Vnesheconomban, and $22 million -to VTB.
Chairman of VTB Bank (Armenia) Yuri Gusev earlier said the bank
together with its stockholder, Armenia's Central Bank and Armavia's
owner are seeking for the maximally painless solution to the debt
issues.
According to Muradyan, Armenia's government should follow the creditors
in the write-off, because the company's debt to the government is not
big, and the penalties and fines exceed the debt amount three times.
"I think, in the current situation, when the government can't provide a
direct financial assistance to the company, it should at least write
off the penalties," she noted.
Muradyan highlighted in order to solve the issues, it is necessary
to create an institute of a national air carrier where the government
will hold block of shares of the company.
"Armavia has submitted a list of proposals to the Public Council on
how the company can re-launch its operation, and I think, it is the
best solution, and it is important to follow the path of re-organizing
both: the sphere and the carrier," she resumed.
In the list of proposals, Armavia mainly insists on rebuilding the
parity at the market. The company also requires to remove 10,000
drams (the so-called "tax on air") from the ticket cost. Armavia also
proposes to the government to gain a part of shares of the company
thus restructuring the debt to the state budget.
Some other conditions are to define the clear criteria of "basic
airport" and "national air carrier" terms, and to introduce a 30%
discount on airport fees compared to the foreign companies.
The analogical discount is proposed for leased areas for basic air
carriers.
In addition, in order to avoid the collapse of the national air
deliveries, it is proposed that one and more air carriers should
operate, and air companies should buy air fuel themselves and pay
affordable fees for airport services. -0-
YEREVAN, May 8./ARKA/. The creditor banks had agreed to write off
the penalties and fines of Armenia's national air carrier, Armavia
company, Transport Communications officer Isabella Muradyan said in
an interview with ARKA news agency.
Muradyan is a deputy chief of Armenia's Public Council of Air and
Transport Communications.
Armavia company has stopped operating flights on 1 April and declared
bankruptcy.
"We are aware that the banks agreed, and penalties were written off.
It refers to the debt amount only, which is covered by the air
company's pledged property," she clarified.
According to Russian "Kommersant" daily newspaper, Armavia's debt
to some Russian banks, airports and Rosaviation stands at nearly
$25 million. Besides the Russian banks, the company owes money to
several large Armenian banks. Particularly, Armavia owes several
million rubles to Vnesheconomban, and $22 million -to VTB.
Chairman of VTB Bank (Armenia) Yuri Gusev earlier said the bank
together with its stockholder, Armenia's Central Bank and Armavia's
owner are seeking for the maximally painless solution to the debt
issues.
According to Muradyan, Armenia's government should follow the creditors
in the write-off, because the company's debt to the government is not
big, and the penalties and fines exceed the debt amount three times.
"I think, in the current situation, when the government can't provide a
direct financial assistance to the company, it should at least write
off the penalties," she noted.
Muradyan highlighted in order to solve the issues, it is necessary
to create an institute of a national air carrier where the government
will hold block of shares of the company.
"Armavia has submitted a list of proposals to the Public Council on
how the company can re-launch its operation, and I think, it is the
best solution, and it is important to follow the path of re-organizing
both: the sphere and the carrier," she resumed.
In the list of proposals, Armavia mainly insists on rebuilding the
parity at the market. The company also requires to remove 10,000
drams (the so-called "tax on air") from the ticket cost. Armavia also
proposes to the government to gain a part of shares of the company
thus restructuring the debt to the state budget.
Some other conditions are to define the clear criteria of "basic
airport" and "national air carrier" terms, and to introduce a 30%
discount on airport fees compared to the foreign companies.
The analogical discount is proposed for leased areas for basic air
carriers.
In addition, in order to avoid the collapse of the national air
deliveries, it is proposed that one and more air carriers should
operate, and air companies should buy air fuel themselves and pay
affordable fees for airport services. -0-