Armavia absents itself

Twice I have noted that Armenia’s national airline has been rumoured to be on the edge of bankruptcy. Last year, their owner threatened to bankrupt the airline unless Russia’s Vnukovo (Moscow) reduced fees.

On March 29, 2013 the carrier finally collapsed with debts of:
$US5 million owed to Zvartnots International Airport
$US22 million to VTB bank
$US1.5 million to Vnukovo airport.

The airline is the third Armenian carrier to go after Armenian Airlines collapsed in 2003 and Armeninan International merged with Armavia in 2005.

In the post bankruptcy discussions, the collapse was blamed on poor management, high airfares, insufficient government support and bizarrely their monopoly position!

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