ARMAVIA EYES 13% PASSENGER GROWTH BY END-2008

ARKA
Oct 1, 2008

YEREVAN, October 1. /ARKA/. Armenia's national air carrier Armavia
plans to boost passenger traffic by 13% after it opens five new
flights, reported Mikhail Baghdasarov, president of the company.

"This is a considerable growth, taking into account that airlines
across the world have been hard hit by reducing passenger traffic,"
he said Tuesday during the celebration of the Aviation Day.

Last year Armavia's passenger traffic reached 572,300 (21% year-on-year
increase).

Earlier this year, the air carrier planned a 20% growth, but the
record-high fuel prices hit the global aviation market.

According to Baghdasarov, Armavia carried 480,000 passengers in
January-September, recording a 12.9% year-on-year rise.

The president of the company believes 2009 will also be a successful
business year for Armavia, taking into account downtrend fuel prices.

This will result in reduction of ticket prices. Baghdasarov said.

Armavia will have a fleet of 16-17 aircrafts soon and will carry
out flights to the United States, China, India, the United Kingdom,
Italy and Spain.

The air carrier currently offers flights to the CIS, Russia, Middle
East and Europe.

The company currently operates 9 aircrafts, including tow A 319
airbuses, two A320 airbuses, one Boeing 737, one CRJ 100, one YAK 42,
one Tu-134 and one IL-86.