Armavia Armenian Airline Owner Received Offer to Buy Georgia’s National Air Carrier

Armavia has taken many loans but has no obligations to a leasing company, said Armavia owner Mikhail Baghdasarov, speaking to journalists in Yerevan today.

According to him, his company prefers to purchase expensive aircraft so as not to pay a huge lease. “There’s even an aircraft that we’re returning because it’s very expensive and the savings are not much. We acquired the Airbus 320 aircraft in 2008; at the time leasing was very expensive and $500,000 per month was an exorbitant rate and for this reason we’re returning it; we’re paying some fines, but all this is much cheaper than if we kept it for another 36 months.”

Asked whether the company is on the verge of bankruptcy, Baghdasarov responded in the negative, adding that “some media, on some advice or without any advice, are trying to discredit Armavia, but they’re not that successful.”

Commenting on reports of moving his business to Georgia, the Armenian airline company owner said there’s a proposal to purchase Georgia’s national carrier, but he has not yet made a final decision on the matter. “And what am I supposed to move?” he asked, “Petrol? The cement factory or the airline company? To take the capital and place it there? Why?”

According to Baghdasarov, the toughest part of the economic crisis will be felt in 2013. “It’s better that I wait rather than not wait. If you wait, it means that you’re getting ready, but when you don’t wait, you get unexpected problems. The crisis hampers business; our work is tied with the population. If the population doesn’t have money, it means people don’t fly. We have in interest in the population having [financial] means so that it vacations more, drives more.”