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Armenian government sues Armavia airline

Armenia Materials 23 May 2013 18:47 (UTC +04:00)
The State Revenue Committee of Armenia representing the Armenian government filed a claim against the national airline ‘Armavia’ in connection with the collection of the so-called air tax
Armenian government sues Armavia airline

The State Revenue Committee of Armenia representing the Armenian government filed a claim against the national airline 'Armavia' in connection with the collection of the so-called air tax, Finance Minister David Sargsyan said during the question time in the National Assembly on Wednesday, ARCA reported.

'Armavia' which decided to suspend the flights and the beginning of the bankruptcy proceedings on April 1, 2013, presented to the Public Council a program of measures for recovery of the company. In particular, the company is proposing to abolish the state due in the amount of 10,000 dram included in the ticket price (the so-called air tax), to create equal opportunities on the market, to provide an opportunity for independent purchase of aviation fuel, to restructure the company's debts to the state.

Responding to a question of the parliamentary of 'Rule of Law' coalition's faction Hovhannes Margaryan about how much of the state duty 'Armavia' has owed, Sarkisian noted that the company's debt to the state in this line has not been yet calculated.

However, he informed that different lenders have also filed a claim against 'Armavia'.

On April 1, the airline suspended flights and began bankruptcy procedures.

Armavia national airline was established in 1996. In 2005, all the shares were transferred to the "Mika Limited" president Mikhail Bagdasarov, one of the Armenian biggest entrepreneurs.

Before suspending flights, Armavia was making more than 100 flights a week to more than 40 destinations in 20 world countries.

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