20:04, 29 March, 2013

YEREVAN, MARCH 29, ARMENPRESS: Debt of Armavia airlines to Russia for
provision of air navigation services reaches USD 288,000. As reports
Armenpress, this was reported by Gazeta.ru.

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, Sochi and Krasnodar.

Armavia has also some debts to Russian banks, especially VTB. That was
the loan for the purchase of Russian-made Sukhoi superjet. Now VTB
tries to return the sum of money and filed USD 22 million lawsuit
against head of "Armavia" and "Mika Limited" companies Mikhail

Armavia's owner, Mikhail Bagdasarov, announced his intention to sell
the company last year, but has failed to find a buyer.

Armenia's national air carrier "Armavia" air company made a decision
to suspend the flights starting from April 1, 2013. The air company
informed Armenpress that during the last three years the owner of
the company implemented funds from other enterprises belonging to him
aimed at the development of the Air Company. The situation became very
complicated and hence, a decision was made to suspend all the flights
and start the bankruptcy procedure. "Armavia" Air Company expresses
its gratitude to the whole its passengers, whom they worked with for
12 years.