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Open Skies: Armenian Public Council Supports New Policy On Aviation

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  • Open Skies: Armenian Public Council Supports New Policy On Aviation

    OPEN SKIES: ARMENIAN PUBLIC COUNCIL SUPPORTS NEW POLICY ON AVIATION MARKET

    http://www.armenianow.com/economy/50343/armenia_open_sky_policy_aviation_market_public_cou ncil
    ECONOMY | 25.11.13 | 16:12

    Photolure

    By SIRANUYSH GEVORGYAN
    ArmeniaNow reporter

    Public Council members believe the "open skies" policy adopted by the
    government of Armenia in the sphere of civil aviation is a good idea,
    but say Armenia needs national carriers and a national flying stock.

    The Armenian government announced around a month ago that the civil
    aviation in the country would from now on be open to all the air
    companies meeting international standards. Prime Minister Tigran
    Sargsyan, with reference to the research results by McKinsey &
    Company counseling, stated that liberalizing the filed would spur
    economic development and price reduction. The government says the
    expected positive outcome would be visible in 1-2 years - ticket
    prices would drop by 10 percent, while the amount of flights would
    increase by 20-25 percent.

    Armenia's national carrier Armavia's bankruptcy has prompted the
    decision on liberalizing the sphere of civil aviation in Armenia.

    Armavia, which had imposed complete monopoly in the sphere and set
    rather high ticket prices, had somehow accumulated extensive debts
    and failed to survive competition.

    "We support the liberalization of the civil aviation to be able to
    offer more affordable ticket prices and develop the inbound and
    outbound tourism, but we are a country in a blockade, the war is
    not over yet, that is why we need our own aviation," says Vazgen
    Safaryan, chairing the Public Council's commission on financial and
    economic issues.

    Currently one private local company Air Armenia, operating flights to
    several destinations in Russia, offering also charter flights, owns
    one aircraft and is renting the others. Another local air company, SKY
    NET, will enter the market soon with only one 19-seat plane to operate
    domestic flights Yerevan-Gyumri, Yerevan-Kapan, Yerevan-Stepanakert.

    Company leader Grigory Vardanyan says they offer diverse services,
    such as tourist tours in Armenia, wedding air tours, corporate and
    medical assistance flights.

    The company is planning to offer summer flights to Batumi, Tbilisi, and
    Tabriz. SKY NET's director says one-way tickets to these destinations
    would cost around a $100.

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