Government Invests Approximately 5 Billion for Creation of National Airline: What Will It Be Called?

The government is investing 4 billion 733 million 720 thousand drams for the shares of the newly established national airline, aimed at the statutory capital of the Armenian State Interests Fund.

“We conducted the transaction based on a professional valuation and received a program that represents the most viable model. We are not just registering an airline that theoretically could become one of such attempts in the last 20-25 years. With this program, we are creating a nationally competitive airline that already has a competitive advantage based on the approximately 20 years of positive experience of Air Arabia. This is the first time we have the opportunity to have a national airline based on a long-term competitive and viable strategy. The establishment of the airline in cooperation with the first and largest low-cost airline in the Middle East and North Africa is also of great significance from the perspective of investment competition,” said Davit Papazyan, head of the Armenian State Interests Fund.

Papazyan noted that this is a crucial step for the economy. He added that the company will have no state privileges.

Armenian Prime Minister Nikol Pashinyan also expressed that this decision reflects the government’s political will to have an Armenian airline. “This does not mean that there shouldn’t be or couldn’t be other Armenian airlines in Armenia. With this joint investment, we invite Air Arabia to establish and manage an airline with us, which will be named ‘Arna.’ We must create clear guarantees that the commitment made in spring 2022 for the airline to operate regular flights must be fulfilled, and we will do everything necessary to ensure that this commitment is clearly realized,” said Nikol Pashinyan.