Armavia CEO blames poor management for bankruptcy

April 11, 2013 - 19:45 AMT

PanARMENIAN.Net - The chair of the Public Council of Armenia named bad management, high prices and insufficient governmental involvement among reasons for Armavia air company’s bankruptcy.

As Vazgen Manukyan stated at the April 11 hearing on Armavia bankruptcy, on April 18, the Council will submit a final conclusion on the issue for the government’s consideration. As Manukyan noted, Armenia must have 2-3 competing air companies to curb monopoly and provide transparency in the sector.

Armavia CEO Norayr Beluyan, in turn, stressed that a national air company with a 51% governmental share is necessary in order to provide proper management. He further agreed with Manukyan as to poor management in Armavia.

The General Manager of Armenia-International Airports CJSC Marcelo Wende, in turn, noted that currently, many companies are interested in operating flights to Armenia, which will help decrease the prices. As he noted, forming a new company will take up to 1 year.

The head of Krunk Air Vladimir Poghosyan expressed readiness to get a certificate for flights operation. “We have enough funds to purchase 8 planes to form an air company within 2-month period,” he said.