The Associated Press
March 29 2013

YEREVAN, Armenia (AP) - Armenia's national airline, Armavia, has
declared the start of bankruptcy proceedings.

The carrier said in Friday's statement that it will halt flights
next week. Armavia currently has 14 aircraft conducting more than
100 flights a week to 20 countries.

Russia's civil aviation authority said Armavia has an outstanding
debt of $1.4 million to Moscow's Vnukovo airport and smaller debts
to two other airports in southern Russia.

Armavia's owner, Mikhail Bagdasarov, announced his intention to sell
the company last year, but has failed to find a buyer. Bagdasarov
attributed Armavia's troubles to the global economic downturn and
losses from using a new Russian-made Sukhoi superjet.

The landlocked ex-Soviet nation's economy has been hobbled by the
longstanding closure of its borders with Azerbaijan and Turkey over
the conflict Nagorno-Karabakh.