Russian Sukhoi Civil Aircraft considering filing lawsuit against Armenia’s Armavia

YEREVAN, August 18. /ARKA/. Russian Sukhoi Civil Aircraft (SCA) is considering filing a lawsuit against Armenia’s national airline Armavia in a bid to recover debts for the two Sukhoi SuperJet 100 (SSJ-100) aircraft ordered by the Armenian airline, RBC Daily reported today.

Two Armavia SSJ-100s are currently grounded at Sukhoi Civil Aircraft's test facility in the Moscow region airport of Zhukovsky, where they are scheduled to undergo maintenance works, RBC reported, but Armavia has yet to pay for them, Sukhoi's Vice President Yevgeny Konkov said without elaborating on the size of the debt, adding that Sukhoi could not confiscate the aircraft, since they are being held under a pledge by an Armenian bank.

Moreover, state-owned VEB offered to refinance Armavia's debt through an eight-year 40m loan, but Armavia rejected the deal in early August, claiming that it wants to return the two planes and that it had no outstanding obligations to Sukhoi.

Armavia has been operating Sukhoi SuperJet-100 since April last year and owes Sukhoi Civil Aircraft about $ 4 million. Armavia, along with Russian Aeroflot was the basic customer of SSJ-100 aircraft, but in June it said it would not buy a second SuperJet, without revealing the reasons.

Sukhoi Civil Aircraft blamed it on Armavia’s financial difficulties. Later, the Armenian airline said it was going to cease operating the aircraft because after 12 month operation, the aircraft needed repairs. 

According to unofficial reports, the first aircraft is pledged by Armenian Ardshininvestbank to which Armavia owes $1.2 million. This aircraft was pledged in turn as a collateral for a loan in the amount of $3.4 million, which the airline took to buy a Bombardier aircraft, according to RBC.

"Armavia has no desire to bring in the second aircraft because it is economically not profitable and needs some additional work. Armavia is a small company and can not bear the costs for finalizing the aircraft," according to a source in Armavia. The airline refused to comment on the possible lawsuit.

Russian Prime Minister Dmitry Medvedev instructed the ministries of industry and trade and foreign affairs in cooperation with the United Aircraft Corporation, which comprises Sukhoi Civil Aircrafts, to study the issue and prepare a report for the government until September 15. -0-