ArmInfo. Opposition MP from the <Armenia> faction Tadevos Avetisyan, commenting on rumors circulating in the media about serious financial problems of Fly Arna, declares the dissipation of public funds and demands an answer from officials.
Let us recall that The project to establish a new airline became known in July 2020, when David Papazian, CEO of Armenian National Interests Fund (ANIF) and Adel Al Ali, CEO of the Sharjah-based budget airline Air Arabia, signed an agreement.
On December 10, 2021, Armenian National Airlines CJSC received state registration and began operating in Armenia under the Fly Arna brand - ARmenian National Airlines.
"The authorities of that time presented this investment program loudly and on all kinds of platforms. Of course, this populist staging was launched at the most convenient moment - during the pre-election period of the 2021 parliamentary elections. They did not miss the opportunity and, as usual, with this program they promised new foreign investments and new jobs, cheaper air travel, solutions to many security problems, etc.
In fact, now it is becoming clearer - this was another portion of the government's boundless populism in exchange for votes," says the MP's statement received by ArmInfo. Tadevos Avetisyan provides some details of the program. Thus, by the decision of the Government of the Republic of Armenia in October 2021, 4 billion 733 million 720 thousand drams (about 12 million US dollars) were allocated from the state budget to ANIF. Thus, the state, represented by ANIF, became the owner of 49% of the company's shares. (On October 14, by decision of the Cabinet of Ministers, the authorized capital of the ANIF fund was increased. The allocated funds were used to establish the national air carrier Fly Arna, a joint project of ANIF with Air Arabia, ed. note).
The parliamentarian notes that two years after the establishment of the air carrier, as yet unrefuted information is being circulated in the media that Fly Arna is experiencing serious financial problems, does not operate flights and is on the verge of ceasing its activities. Another state investment bubble is bursting, he emphasizes.
Now, according to Tadevosyan, the time has come for the "all-promising" and once again failed officials, and the law enforcement agencies serving them, to at least answer questions about possible financial abuses in this state investment program and about lost public funds. The MP is also interested in whose incompetence caused the failures in the management of the company and what negative consequences the suspension of the company's activities will have on the air transportation market.
"What negative impact will the further possible liquidation of this company with state participation have on the investment rating of the state? And is there any investment program that you have "opened" that has not suffered or will not suffer the same fate?" asks Tadevos Avetisyan, expecting comprehensive and public answers from those in charge to the questions posed.
It should be noted that in connection with the widespread rumors about Air Arabia's intentions to leave the Armenian air transportation market as early as December 2023 and withdraw from the authorized capital of the established joint airline Fly Arna, at ArmInfo's request in November last year, the Civil Aviation Committee of Armenia clarified that it does not have data on possible withdrawal from the Armenian market. As sources close to the Arab airline told ArmInfo, the reason for this intention was the failure of the Armenian side to fulfill a number of agreed upon agreements.
However, on December 1, during a briefing, Armenian Minister of Economy Vahan Kerobyan, answering a question regarding the possible cessation of airline flights in Armenia, admitted that the national air carrier Fly Arna needs additional funding. "I don't have that information. I know that the company needs additional financing, and this issue is currently being discussed. I think appropriate solutions will be found. We are working with the company," the minister noted. However, he did not specify what decisions he was talking about.
