Another Russian airline enters Armenian market: Coincidence or trend?

ArmInfo. The Russian Federal Air Transport Agency also known as "Rosaviatsiya" has authorized Saratov Airlines to launch Samara-Yerevan flights twice in a week. Saratov Airlines serve flights throughout Russia from Europe, Asia and Africa.  The company won national prize "Wings of

Russia" in 1999, 2000, and 2006.  Earlier, Ural Airlines announced regular flights to Yerevan (once in a week on Mondays). A day ago, Nordwind Airlines has announced regular flights to Yerevan from Domodedovo Airport in Moscow five times a week, besides Tuesdays and Thursdays, as on the given two days, the company will be making flights from Moscow to Gyumri, the second largest town in Armenia.

UTair Company too has increased the frequency of its daily flights from Moscow to Yerevan. From now on, the airline will make two flights a day, according to UTair website.  The company offers flight by Boeing 737-500, both business and economy flights. In addition, starting July 1, residents of Krasnodar region will use the direct flights of UTair to Yerevan - 4 times a week with a travel time of 1 hour 30 minutes.   On May 20 2016, the Russian Foreign Ministry appointed UTair Airline as the regular air carrier of passengers, luggage, freight and post for the following routes:  Sochi-Yerevan and back - 3 flights a week; Roston-on-Don - Yerevan a back - 3 flights a week; Mineralniye Vodi- Yerevan and back - 3 flights a week; Krasnodar -Yerevan ad back - 7 flights a week. 

A question arises as to whether this expansion of the Russian airlines into the Armenian market is coincidence or a trend?

On March 16, the new air carrier Armenia was certified to launch regular flights. A decision on it was adopted at a discussion on regular commercial air transportation at the Economy Ministry of Armenia. The company plans to fly to 17 destinations. The Ministry will be monitoring the implementation of the company's commitments. Armenia airline planned to launch regular flights on April 21. The first planned destinations were Tel-Aviv and Moscow. The airline had big ambitions and plans. The company told ArmInfo they have been making flights to Tel-Aviv jointly with Georgian Airways since April 21.  Starting June 20-25, Armenia air carrier plans to make flights to Tel-Avov and Mineralnie Vodi, starting from July 7-8, it may launch flights to other European destinations too.  As for such demanded destination as Moscow, Gevorg Khachatryan, representative of Armenia air carrier said: "Although the flights to Russia are of strategic importance for us, the stiff competition with the Russian airlines, such flights are economically unviable to us. "

Earlier, in March 2016, the Court approved the program of financial rehabilitation of Air Armenia air carrier.  Arsen Avetisyan, the head of Air Armenia, told ArmInfo then that the company planned to re- launch activity soon and repay its debts within 24 months. He said the Russian airlines have preferential terms at the Armenian airport, unlike the local carrier. However, the company has not re-launched its activity yet and its leadership is out of range. Nothing is known about its rehabilitation program either.  In conditions of such stiff competition, the national aviation will hardly be reanimated in Armenia soon.