Mismanagement identified as being at the root of the problem (340 words)

Published: 10/2/2000

According to Dmitry Atabashyan, the Chairman of Armenia's National Aviation Union, Armenian aviation is in a precarious condition after continued declines in passenger numbers after a fall of 34% in 1999 and losses of $1.6m. The country's lead airport at Erevan is experiencing little traffic due to the decline in the number of aircraft operated by Armenian Airlines has fallen to 11 aircraft (3 Tu-154, 3 Yak-40, 2 Tu-134, 2 IL-86 and 1 leased Airbus A-310) from 18 aircraft reported earlier this year. The fleet has been steadily reduced by scrapping and write offs, although not without controversy. According to Atabashyan some of the write offs are considered to be questionable, with several aircraft written well before the end of their official lifetimes, although he does to proffer any explanation for the airline's reason for such write offs. Leaving the implication that it reflects the general mismanagement of the industry. He also believes that the lease of Airbus A-310 has been questionable, given that the National Aviation Union estimated losses from operating the aircraft were $5 m in 1999. Leaving Armenian Airlines in poor financial condition with its aircraft seized in foreign airports because of non-payment of debts. Atabashyan argues that the disintegration of the previously controlling aviation entities has left the industry fragmented and managed by individuals with little understanding of air transport. Currently Erevan Airport has 23 independent services providing ground support for each departing aircraft, which Atabashyan argues increases costs and leaves the airline bearing the impact. The government, was reported last year to be considering the privatisation of the airline, but the $15-20m investment required to keep the airline viable according to Ervan Zakharan, the Minister of Transport, appears to have kept any offering on hold.

Article ID: 2100