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RUBEN VARDANYAN: TRANSPORT PROBLEM OF ARMENIA ONE OF KEY OBSTACLES TO DEVELOPMENT OF ECONOMY
by Emmanuil Lazarian
http://www.arminfo.am/index.cfm?objectid=DB6AD2D0-84F2-11E3-A2DB0EB7C0D21663
Friday, January 24, 15:27
Every country has an obstacle to development of its economy, in Armenia
it is the transport problem. Ruben Vardanyan, Russian businessman,
the founder and the head of IDeA Foundation, made such statement in
an interview with the Shant TV when commenting on the reasons of his
participation in development of "open skies" project together with
the international consulting firm McKinsey.
To make the people in Armenia live better and have more opportunities
to use their potential, it is necessary to settle the tasks that
are prior for development of economy, he said. First of all,
it is necessary to persuade the Armenian elite that we need more
air companies and more links to Yerevan. In this light, the opens
skies concept will make that possible, he said. "At the same time,
a question arises as to whether we need a national air carrier. I
think, the country needs a national air carrier that would fly in
'open skies' at the same time competing with other airlines on market
terms, which is not so easy to do in practice.
It is a very complicated model. However, if we want to have 2
million tourists instead of 700,000, which would be a good impetus
for development of economy, tourism infrastructure and for opening of
additional 20,000 jobs, we must do it. So we must be ready to have open
skies, various air lines with more resources and richer experience. In
this light, it will not be easy for new Armenian airlines to enter the
market. It is necessary to foster this process, but it is necessary
to do it in market terms and not through monopolization and other
encumbrances. Otherwise, it is impossible to change Armenia in
long-term outlook, he said.
To recall, in the middle of 2013, Armavia national air carrier,
the monopolist in the Armenian aviation market, announced bankruptcy
finding itself in a debt hole. Taking advantage of that circumstance,
foreign airlines even more increased the prices of their unreasonably
expensive tickets. With Air Armenia company entering the market of
passenger transportation, the situation has fundamentally changed
and ticket prices were fairly reduced. Previously, Air Armenia was
engaged in freight activity. However, the open skies concept McKinsey
consulting firm has prepared for the Armenian Government sets too
tough terms and requirements to air companies, which seriously impedes
establishment of national civil aviation in the country.
by Emmanuil Lazarian
http://www.arminfo.am/index.cfm?objectid=DB6AD2D0-84F2-11E3-A2DB0EB7C0D21663
Friday, January 24, 15:27
Every country has an obstacle to development of its economy, in Armenia
it is the transport problem. Ruben Vardanyan, Russian businessman,
the founder and the head of IDeA Foundation, made such statement in
an interview with the Shant TV when commenting on the reasons of his
participation in development of "open skies" project together with
the international consulting firm McKinsey.
To make the people in Armenia live better and have more opportunities
to use their potential, it is necessary to settle the tasks that
are prior for development of economy, he said. First of all,
it is necessary to persuade the Armenian elite that we need more
air companies and more links to Yerevan. In this light, the opens
skies concept will make that possible, he said. "At the same time,
a question arises as to whether we need a national air carrier. I
think, the country needs a national air carrier that would fly in
'open skies' at the same time competing with other airlines on market
terms, which is not so easy to do in practice.
It is a very complicated model. However, if we want to have 2
million tourists instead of 700,000, which would be a good impetus
for development of economy, tourism infrastructure and for opening of
additional 20,000 jobs, we must do it. So we must be ready to have open
skies, various air lines with more resources and richer experience. In
this light, it will not be easy for new Armenian airlines to enter the
market. It is necessary to foster this process, but it is necessary
to do it in market terms and not through monopolization and other
encumbrances. Otherwise, it is impossible to change Armenia in
long-term outlook, he said.
To recall, in the middle of 2013, Armavia national air carrier,
the monopolist in the Armenian aviation market, announced bankruptcy
finding itself in a debt hole. Taking advantage of that circumstance,
foreign airlines even more increased the prices of their unreasonably
expensive tickets. With Air Armenia company entering the market of
passenger transportation, the situation has fundamentally changed
and ticket prices were fairly reduced. Previously, Air Armenia was
engaged in freight activity. However, the open skies concept McKinsey
consulting firm has prepared for the Armenian Government sets too
tough terms and requirements to air companies, which seriously impedes
establishment of national civil aviation in the country.