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What Russia Wants From Armenian Air Companies

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  • What Russia Wants From Armenian Air Companies

    WHAT RUSSIA WANTS FROM ARMENIAN AIR COMPANIES

    Hakob Badalyan, Political Commentator
    Comments - 12 September 2014, 20:32

    The director of Air Armenia Armen Avetisyan told reporters, "I don't
    want to guess what the cause of such action was but every time we
    increase destinations of our flights, the Russian side displays
    worries."

    Earlier the Russian side announced that on September 21 air traffic
    control services for Air Armenia will be suspended in the territory
    of Russia. The Armenian company announced that payments were made
    conscientiously but there are problems with bank communication which
    is determined by Western sanctions against Russia, and they are asking
    the Russian company to provide an account number to which the money
    will be transferred to the Russians without hindrances.

    The issue that Arsen Avetisyan brings up is really interesting. Why
    is the Russian side conducting such an information policy against
    the Armenian airlines? It is difficult to call this otherwise but
    information attack. At least, doubts occur that the problem is
    compensation.

    Flights to Russian destinations outnumber others on the Armenian
    market for comprehensible reasons, and are certainly more profitable.

    Air Armenia is the only Armenian airlines. It replaced Armavia after
    the latter's bankruptcy. Armavia had a monopoly which, however,
    did not "prevent" this company with so-called Russian "sprigs" from
    going bankrupt.

    In addition, judging by the policy conducted by Russia against the
    Armenian company, doubts occur that Armavia went bankrupt to leave
    the Russian companies alone on the market. After all, Armavia was de
    facto a Russian company rather than an Armenian one. Simply Armenia
    gave part of the money. Why would they lose that part if they could
    send the company into bankruptcy and take away that money as well?

    A few months ago the government launched the open sky policy which
    means no company receives any preference. Armenia adopted this policy
    by the decree of the previous government, which was supported by the
    United States and Europe as a stimulus for development of tourism
    in Armenia. This policy has produced certain positive results,
    air prices in some destinations are cheaper, several new companies
    and destinations have appeared on the market though there are also
    companies that have left or are going to leave.

    Air Armenia is the only Armenian company in the Armenian open sky,
    which mostly flies to Russia. Some experts fear that in the result
    of the open sky policy the Russian companies will dominate on the
    Armenian market.

    In fact, what is happening to Air Armenia is evidence that Russia
    does have such intentions. It may be a naturally driven one. However,
    it is equally natural that this intention must be preempted by the
    government to make sure that the open sky policy of the government
    does not end up as always, i.e. absolute dominance of Russia in this
    sector of Armenia as well.

    http://www.lragir.am/index/eng/0/comments/view/32969#sthash.n2kHgVJY.dpuf

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