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Business | 24.05.13 | 16:07
Canadian firm shows interest in Armenian air market development
[image: Canadian firm shows interest in Armenian air market development]
NAZIK ARMENAKYAN
ArmeniaNow
Raffi Elliott
By Siranuysh Gevorgyan
ArmeniaNow reporter
A Canadian aviation consulting company has shown willingness to draft a
development plan to spur the Armenian aviation market.
The Toronto-based KNM Aviation Company recently submitted an offer to the
government-affiliated Civil Aviation Department, the Ministry of Transport
and Communications and Armavia, Armenia's national carrier, which stopped
operating flights last month, suggesting a plan that includes a rebranding
of Armavia, a change of management and further development.
The company's representative in Armenia Raffi Elliott says the company is
experienced in working with small air companies in small countries and has
several success stories in post-Soviet countries and in the Caribbean.
Elliott told ArmeniaNow that his company's interest in Armenia is partly
conditioned by the fact that it has native-Armenian partners.
`Diaspora Armenians take great pride in the fact that Armenia has its
national air carrier, but as soon as they went on board an Armavia aircraft
their pride would vanish. Now those people truly want Armenia to have a
modern and well-managed airline, and the occasion has arrived,' he says.
Armavia stopped all of its flights starting April 1 this year, filing for
bankruptcy. The company owes millions of US dollars to the government,
local banks and other companies. It is noteworthy that the company has not
yet turned to court to start the bankruptcy procedure, instead submitted a
`rehab' plan to the Public Council, which in turn approached the government
with suggestions over civil aviation. The Armenian government has filed a
lawsuit against Armavia demanding that it pay its debts on air tax. The
Orakarg (Agenda) newspaper's economic analyst Armenak Chatinyan shares his
estimates of the scale of Armavia's debts, saying only in Armenia it could
amount to over a hundred million dollars.
*Elliott says according to KNM Aviation, the reason Armavia failed is its
`Soviet', very poor management system, which hampered the company's
development.
`There are so many reasons=85, since Armavia enjoyed monopoly in the sphere,
it did not even care to become competitive. I always say that Armavia is
the sky route bus (marshutka), meaning that it flies when the plane is
full, with nobody saying to fasten the belts, no rules, no order, etc.
Armavia does not need to pretend being British Airways, but can become an
Armenian version of Fly Dubai,' he stresses.
KMN Aviation also believes that Zvartnots International Airport has to be
operated to its full capacity in order to develop Armenia's civil aviation
market.
`Armenia is very lucky to have a state-of-the-art airport, best in the CIS,
but it is not used to its best advantage. Now that Armavia is bankrupt,
flights from foreign airlines have increased. Why aren't we using the
airport of such capacity to offer flights from Europe to, say, India or
China, through Yerevan rather than Dubai, for more affordable prices?' says
Elliott.
The KNM Aviation representative says the Civil Aviation Department has
given a positive evaluation to their offer, but stressed the importance of
working with Armavia. According to Elliott, however, they have not had much
luck getting in touch with Armavia's management as the airline's office
does not respond to their e-mails. But, he says, they will keep trying.
ArmeniaNow, too, tried to contact Armavia, but with no better luck.*
http://armenianow.com/economy/business/46432/armenia_canadian_company_knm_armavia_advice_consul tancy
From: A. Papazian
Canadian firm shows interest in Armenian air market development
[image: Canadian firm shows interest in Armenian air market development]
NAZIK ARMENAKYAN
ArmeniaNow
Raffi Elliott
By Siranuysh Gevorgyan
ArmeniaNow reporter
A Canadian aviation consulting company has shown willingness to draft a
development plan to spur the Armenian aviation market.
The Toronto-based KNM Aviation Company recently submitted an offer to the
government-affiliated Civil Aviation Department, the Ministry of Transport
and Communications and Armavia, Armenia's national carrier, which stopped
operating flights last month, suggesting a plan that includes a rebranding
of Armavia, a change of management and further development.
The company's representative in Armenia Raffi Elliott says the company is
experienced in working with small air companies in small countries and has
several success stories in post-Soviet countries and in the Caribbean.
Elliott told ArmeniaNow that his company's interest in Armenia is partly
conditioned by the fact that it has native-Armenian partners.
`Diaspora Armenians take great pride in the fact that Armenia has its
national air carrier, but as soon as they went on board an Armavia aircraft
their pride would vanish. Now those people truly want Armenia to have a
modern and well-managed airline, and the occasion has arrived,' he says.
Armavia stopped all of its flights starting April 1 this year, filing for
bankruptcy. The company owes millions of US dollars to the government,
local banks and other companies. It is noteworthy that the company has not
yet turned to court to start the bankruptcy procedure, instead submitted a
`rehab' plan to the Public Council, which in turn approached the government
with suggestions over civil aviation. The Armenian government has filed a
lawsuit against Armavia demanding that it pay its debts on air tax. The
Orakarg (Agenda) newspaper's economic analyst Armenak Chatinyan shares his
estimates of the scale of Armavia's debts, saying only in Armenia it could
amount to over a hundred million dollars.
*Elliott says according to KNM Aviation, the reason Armavia failed is its
`Soviet', very poor management system, which hampered the company's
development.
`There are so many reasons=85, since Armavia enjoyed monopoly in the sphere,
it did not even care to become competitive. I always say that Armavia is
the sky route bus (marshutka), meaning that it flies when the plane is
full, with nobody saying to fasten the belts, no rules, no order, etc.
Armavia does not need to pretend being British Airways, but can become an
Armenian version of Fly Dubai,' he stresses.
KMN Aviation also believes that Zvartnots International Airport has to be
operated to its full capacity in order to develop Armenia's civil aviation
market.
`Armenia is very lucky to have a state-of-the-art airport, best in the CIS,
but it is not used to its best advantage. Now that Armavia is bankrupt,
flights from foreign airlines have increased. Why aren't we using the
airport of such capacity to offer flights from Europe to, say, India or
China, through Yerevan rather than Dubai, for more affordable prices?' says
Elliott.
The KNM Aviation representative says the Civil Aviation Department has
given a positive evaluation to their offer, but stressed the importance of
working with Armavia. According to Elliott, however, they have not had much
luck getting in touch with Armavia's management as the airline's office
does not respond to their e-mails. But, he says, they will keep trying.
ArmeniaNow, too, tried to contact Armavia, but with no better luck.*
http://armenianow.com/economy/business/46432/armenia_canadian_company_knm_armavia_advice_consul tancy
From: A. Papazian