UAE budget airline Air Arabia is reportedly preparing to launch arbitration against Armenia over their joint venture to create the country’s national flag carrier, according to a report from the GAR (Global Arbitration Review).

The company, Fly Arna, was set up by the UAE-based carrier Air Arabia and the Armenian National Interests Fund (ANIF), a state agency, in July 2021 a year before launching inaugural flights to a limited number of foreign destinations. It is equally co-owned by Air Arabia and ANIF, with each of them having invested 4.4 billion drams ($11 million) in its operations.

However, Fly Arna halted all of its flights on January 16, saying that it is going through “operational changes” and hopes to resume its service “as soon as possible.”