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NEW SHAREHOLDER OF AIR ARMENIA PLEDGES $30 MILLION INVESTMENT
Legal Monitor Worldwide
December 20, 2014 Saturday
The new shareholder of Air Armenia airline - East Prospect Fund -
has pledged a $30 million investment in the company. Speaking at a
news conference today in Yerevan
East Prospect Fund chief manager Vladimir Bobylev said the fund's
main objective will be to develop the airline. He said under the
agreement the first stage investment will amount to $30 million and
besides the company has a tentative agreement on bringing new planes.
'We have a clear plan for the company's restructuring and a new
business plan, said Bobylev
He said East Prospect Fund has chosen Air Armenia because it believes
that Armenia will become a prospering country and the airline will
become a successful carrier.
Bobylev said the fund owns two factories, a quartzite deposit,
estimated by Ukrainian Geological Service at $2.5 billion and lots
of land in the Kiev region.
He also said that the East Prospect Fund is a licensed financial
institution and not an offshore company.
"Our license terms are very strict. We are not a company, we are a
fund. Our regulations are similar to those of banks, but unlike other
financial institutions, our fund is working within financial law. In
fact we are a Western financial institution that has come to Armenia,
said Bobylev.
Air Armenia CEO Arsen Avetisyan said the airline will resume flights
in 2015 March. He said the airline is working now to bring back two
its planes which are in Amsterdam for an overhaul.
He said the agreement with East Prospect Fund was signed December 12
and now it owns 49 percent in Air Armenia. The remaining 51 percent
belong to the CEO.
According to Arsen Avetisyan, in 2015 the airline will operate
five aircraft to make flights to Thailand, China and some other
destinations.
In late October, Air Armenia decided to restructure its finances
and change the flights schedule after seeing an 80 percent drop in
air tickets sales. In a statement in late October Air Armenia blamed
the dramatic drop on a 'panic' among investors and customers after
Rosaeronavigatsia, a Russian federal air navigation service, said
the Armenian airline had huge outstanding debts.
Air Armenia began operating commercial passenger flights in 2013
after the bankruptcy and liquidation of Armenia's national air carrier
Armavia. 2014 Legal Monitor Worldwide.
From: A. Papazian
Legal Monitor Worldwide
December 20, 2014 Saturday
The new shareholder of Air Armenia airline - East Prospect Fund -
has pledged a $30 million investment in the company. Speaking at a
news conference today in Yerevan
East Prospect Fund chief manager Vladimir Bobylev said the fund's
main objective will be to develop the airline. He said under the
agreement the first stage investment will amount to $30 million and
besides the company has a tentative agreement on bringing new planes.
'We have a clear plan for the company's restructuring and a new
business plan, said Bobylev
He said East Prospect Fund has chosen Air Armenia because it believes
that Armenia will become a prospering country and the airline will
become a successful carrier.
Bobylev said the fund owns two factories, a quartzite deposit,
estimated by Ukrainian Geological Service at $2.5 billion and lots
of land in the Kiev region.
He also said that the East Prospect Fund is a licensed financial
institution and not an offshore company.
"Our license terms are very strict. We are not a company, we are a
fund. Our regulations are similar to those of banks, but unlike other
financial institutions, our fund is working within financial law. In
fact we are a Western financial institution that has come to Armenia,
said Bobylev.
Air Armenia CEO Arsen Avetisyan said the airline will resume flights
in 2015 March. He said the airline is working now to bring back two
its planes which are in Amsterdam for an overhaul.
He said the agreement with East Prospect Fund was signed December 12
and now it owns 49 percent in Air Armenia. The remaining 51 percent
belong to the CEO.
According to Arsen Avetisyan, in 2015 the airline will operate
five aircraft to make flights to Thailand, China and some other
destinations.
In late October, Air Armenia decided to restructure its finances
and change the flights schedule after seeing an 80 percent drop in
air tickets sales. In a statement in late October Air Armenia blamed
the dramatic drop on a 'panic' among investors and customers after
Rosaeronavigatsia, a Russian federal air navigation service, said
the Armenian airline had huge outstanding debts.
Air Armenia began operating commercial passenger flights in 2013
after the bankruptcy and liquidation of Armenia's national air carrier
Armavia. 2014 Legal Monitor Worldwide.
From: A. Papazian