Armavia owner negotiating airline's sale - press secretary
YEREVAN. Sept 26 (Interfax) - Mikhail Bagdasarov, the owner of the Armenian national air carrier, Armavia, is holding negotiations on the company's sale, Armavia press secretary Nana Avetisova told Interfax, adding that it could be sold to an Italian buyer.
"No final decision has yet been made as to whether Armavia will be sold to an Italian company or some other," Avetisova said. "I cannot specify the number of companies [wishing to buy Armavia], but there is a choice and an alternative," she said.
The Russian Federal Air Transport Agency (Rosaviation) banned Armavia's flights to Russia due to debts for air navigation services and stopped providing these to the airline on March 6, 2012. However, Armavia forwarded a guarantee letter to the Russian agency the same day promising to clear the December debts by March 20. After that, Rosaviation resumed the airline's servicing and allowed it to fly to Russia until March 20.
The same day, Armavia's conflict with the Yerevan international airport Zvartnots was reported. Armavia announced it was beginning an open-ended strike to demand that the air hub reduce the prices for its services. However, Zvartnots called the airline's claims unwarranted.
Armavia stopped the strike and resumed flights but said it was continuing negotiations with the airport on reducing the prices. Bagdasarov said on March 9 that the company might start negotiations on its bankruptcy in the near future if Zvartnots did not reduce its service prices by 25%.
It was reported on September 20 that Zvartnots Airport suspended Armavia's servicing because of overdue debts for airport services. "The flights have been suspended until the debt is paid," airport spokesman Gevork Abramian told Interfax.
He did not specify the size of the debt, noting only that it is "significant."
Armavia itself told Interfax that the matter involves a minor current debt. An airline spokesperson said the company pays for servicing its flights immediately, but the recent payments were not made due to a weekend and a non-working Monday in Armenia.
Armavia carries out over 100 flights a week to more than 35 destinations in 20 countries. The airline belongs to Bagdasarov through Aviafin (65%), Mika Limited (34.9%) and Mika Corporation (0.1%).