Armavia Still Has No Decision On After April 22

ARMAVIA STILL HAS NO DECISION ON AFTER APRIL 22

The contract between Armavia and the government expires on April 22.

On 14 March 2003 the government and the airlines signed an agreement
vesting in Armavia the exclusive right to operate some flights. Upon
expiry the General Civil Aviation Department must recommend the
government to either prolong the exclusive right or to announce tender,
liberalizing air transportation.

It is not known whether Armavia will continue to operate in Armenia.

The company told Pastinfo that no decision has been made so far. It
is not known whether the company will apply for extension of license
or for tender.

Earlier on March 29 Armavia informed to stop its flights on April 1
and declared bankruptcy. According to the Law on Bankruptcy, the debtor
must file a bankruptcy and the judge will make a decision within 3 days
without calling a court sitting if the debtor appears to be insolvent.

The company will not be declared bankrupt and must pay its liabilities
unless Armavia files a petition for bankruptcy and there is a relevant
court decision.

Armavia told in answer to an inquiry that the process of bankruptcy
is expected, and now all the necessary documents are collected to
apply to court.

Armavia’s debt is reported at 50 million dollars, including 30 million
dollars in Armenia, of which 20 million to the banks.

15:43 22/04/2013 Story from Lragir.am News: