Entry of New Airline Poses Risks of Putting Existing Airlines Out of Business, Tunyan

A new airline entering the Armenian market could create unequal competitive conditions for existing companies, said Babken Tunyan, Chairman of the Permanent Committee on Economic Issues of the National Assembly, during a session.

“This could pose serious risks and put already operating airlines out of business. For example, Air France, which flies to Armenia from Charles de Gaulle Airport, if we plan to add a new airline not by specifying a new route, but by identifying a new airport, it means that some budget airline could operate flights from another airport in Paris to Armenia—taking advantage of this privilege—thus putting years-long operating airlines in Armenia in a bad position,” Tunyan stated.

Speaking about the conclusion of the Competition Commission, Tunyan remarked that although the report contains four pages discussing risks, it has nevertheless provided a positive conclusion to the project. “You mention that your calculations indicate an increase of 300,000 passenger traffic; I would like to see where those calculations come from, who made them, whether they were even computed at all, or if removing the state air tax might result in an even greater economic effect,” Tunyan added.