Air Armenia pays overdue debts and continues regular flights

YEREVAN, September 22. / ARKA /. Air Armenia, Armenia’s main airline, said today it has paid its overdue debts to the Russian State Corporation for Organization of Air Traffic and will continue regular flights to 7 destinations in Russia.

On September 11 the Russian State Corporation for Organization of Air Traffic said it would stop on September 21 providing air navigation services to Air Armenia flights to Moscow and six other Russian cities because of the private carrier’s overdue debts worth $400,000 and current debt worth $700,000. 

The state corporation promised that it would resume air navigation services for the Armenian carrier once it pays fully its outstanding debts and guarantees to pay the current debts. 

"Air Armenia continues implementing its regular flights in accordance with the schedule and, despite some technical difficulties, it has paid the debt to the Russian state corporation. Following it the Russian side informed the Armenian airline that all its  flights will be carried out without any restrictions, " the carrier  said in a statement. 

A senior executive of the Air Armenia said earlier his company was unable to clear the debt because the navigation service’s dollar accounts are with SMP-Bank, one of the Russian banks sanctioned by the Western powers in April due to the Ukraine crisis. He said Air Armenia would  repay the debt in Russian rubles and through another Russian bank by September 21.

Air Armenian is the only company at the local market of air transportation. Armenia’s previous national carrier Armavia went bankrupt in April 2013. The Armenian government responded to it by liberalizing the domestic civil aviation sector. Air Armenia currently flies to 10 destinations in Russia and Europe. -0-