Dubai: UAE’s low-cost carrier Air Arabia and Armenian National Interests Fund (ANIF) agreed to launch Armenia’s new national airline.
The deal will see the establishment of an independent joint venture company that will operate as a low-cost passenger airline with Yerevan’s Zvartnots International Airport (EVN) as its base.
The new carrier will serve the "strategic vision of Armenia’s fast-growing travel and tourism sector as well as contributes to the country’s economic growth," said the companies in a statement.
"This builds on our commitment to partner with top global entities on transformational projects that catalyse our crucial economic sectors," said David Papazian, CEO of ANIF.
"Air Arabia has a well-established track-record in launching and operating successful LCCs, and its knowhow will be a differentiating strength of the new airline," said Papazian.
Based in Yerevan, the new company will adopt the low-cost business model operated by Air Arabia. Work on securing the Air Operating Certificate (AOC) - which allows the airline to start operating- will commence shortly.
"We see tremendous potential for Armenia in building its airline sector, which will add sustained value to the economy through job creation and the development of travel and tourism sector," said Adel Al Ali, Group CEO of Air Arabia.
The name of the airline will be decided by the people of Armenia through an open competition that lasts for four weeks.
More details about the launch date, fleet, and destination network will be announced in due course, said the statement.
"Having a strong national low-cost airline is essential for the development of Armenia’s air transport sector, especially as a tool to recover faster from the COVID-19 crisis," said Tatevik Revazian, Chair of the Civil Aviation Committee of Armenia.
"We are confident that the expertise Air Arabia brings to the JV will support the seamless launch and growth of the carrier," said Revazian.