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Armenian airline to fail to make flights to Russia because of debts

11 September 2014 15:55 (UTC+04:00)
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"State Corporation for Air Traffic Management" Federal State Unitary Enterprise will stop air navigation servicing of Air Armenia in the airspace of the Russian Federation from September 21, 2014, ITAR-TASS reported with the reference to the corporation.

"The State Corporation has provided the Armenian carrier with a deferral of payments for air navigation servicing of flights over the territory of the Russian Federation for a long time," according to the statement. "Despite Air Armenia had every opportunity to pay off the debts, the company management failed to take effective measures to reduce the debt burden."

Air Armenia's arrears to the Russian air navigation service provider are more than $400,000 with the current debt at more than $700,000.

"Non-payment causes direct financial damage to the State Corporation as the company pays taxes according to the legislation," the company said.

In this regard, the State Corporation decided to terminate the air navigation servicing of Air Armenia from Sept. 21.

Air Armenia company was established in 2003. But it began making regular flights in the summer 2013 after the Armenian national airline Armavia stopped operating.

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