Armavia says paid off debt to Russia for air navigation services

Prime-Tass English-language Business Newswire
August 4, 2006 Friday 8:04 PM EET

YEREVAN Aug 4 — Armenian airline Armavia has paid off all its debt to
Russia’s State Air Traffic Management Corporation for air navigation
services, Rafael Avetikyan, the airline’s deputy general director,
said Friday, ITASR-TASS reported.

All issues have been settled and Armavia will continue carrying out
flights to Russia, Avetikyan said.

His statement followed an announcement made earlier Friday by the
State Air Traffic Management Corporation that it planned to stop
providing air navigation services to Armavia starting August 14 due
to Armavia’s failue to pay back U.S. $800,000 for services rendered.

The State Air Traffic Management Corporation first suspended air
navigation services for Armavia February 10 due to the debt, it said.

Armavia provided a timeline for debt redemption February 17 and was
expected to redeem the debt by May 31. However, Armavia reduced debt
payments after the crash of its Airbus A320 plane May 3 and asked
the State Air Traffic Management Corporation for an extension. The
Russian company agreed to provide the extension, but Armavia again
failed to redeem the debt on time.

Armavia’s Airbus A320 plane crashed May 3 into the Black Sea near
the Russian resort of Sochi, killing all 113 people onboard.

Armavia started operating flights in 2001. Its fleet currently
includes six aircraft, including one Airbus A320, two Airbus A319s,
as well as Russian Il-86, Yak-42 and Yak-40 aircraft.