The Armenian government, in a bid to attract more tourists to the country and spur air traffic, has decided to pay foreign and domestic carriers a nominal cash bonus for every passenger they fly to the country on newly-opened routes.

Hungarian budget airlines Wizz Air appears to be the first carrier on track to receive the payments on its new Larnaca (Cyprus) – Gyumri roundtrip flights set to start on September 30.

Airlines launching new flights to Yerevan will get AMD 20,000 ($53) per passenger and AMD 15,000 ($40) per passenger for flights to Gyumri’s Shirak Airport.

The cash renumerations come with several preconditions.

First, airlines must have a branch in the Republic of Armenia. Second, they must have at least two aircraft with the right of use (either their own or leased), which will be based in Armenia. "Based" means that the aircraft will be permanently located at one or two of the international airports of Armenia (Yerevan’s Zvartnots and Gyumri’s Shirak), except for the period of operating flights or undergoing technical maintenance, when they will be located outside the country. The crews of these aircraft (pilots, flight attendants) must also work at the Armenian branch of the airline. Third, new routes to Zvartnots must be operated by aircraft based in Armenia.

In addition, both local and foreign carriers must launch one new route to Gyumri to receive the government’s largesse. If an airline opens a new route only to Zvartnots, it cannot benefit from the program.

Financial support will be allocated for a period of two years starting from the first flight. Moreover, it is mandatory for the beneficiary carrier to operate at least one flight per week along the new route, at least twenty-eight flights in the summer season (March-October), and twenty flights in the winter season (October-March).

The Armenian government predicts the support program will increase passenger traffic from the new routes at Zvartnots and Shirak by some 5-6% compared to the current numbers.

The government argues the program will stimulate tourism to Armenia, expand the range of flights from Armenia, and contribute to the basing of international airlines at the country’s airports.

The government has been trying for years to make Gyumri's Shirak Airport attractive to local and foreign carriers, but it has not worked. Since December 2016, only the Russian Pobeda airline has been providing stable passenger services to Gyumri (with some interruptions), operating the Moscow (Vnukovo)-Gyumri flight.

Shirak Airport’s new departure lounge (primeminister.am)

Since December 31, 2014, the 10,000 dram “air tax” has not been applied at Shirak, which is included in the price of a passenger’s air ticket departing from Armenia. (As for Zvartnots, there are privileges for new destinations in terms of “air tax”).

After Pobeda began flying to Gyumri, the Armenian side has applied several more privileges at Shirak. Since January 2017, the cost of the air navigation service provided by Armenian Air Traffic Services (ARMATS) CJSC has been discounted by fifty percent for air carriers using Gyumri’s airport, and since February of the same year, Zvartnots Aero-meteorological Center CJSC has started providing aero-meteorological service for Shirak free of charge.

Wizz Air on track to meet the preconditions

If Wizz Air meets the requirements set by the government, it can apply and receive AMD 15,000 drams for each passenger transported to Armenia on the Larnaca-Gyumri route.

On August 13, Armenian Minister of Territorial Administration and Infrastructure David Khudatyan told reporters during his visit to Shirak Province that his office had already reached an agreement with one airline. Khudatyan did not mention the name of the airline, but he was certainly referring to Wizz Air.

Hetq sent a request to Armenia’s Ministry of Territorial Administration and Infrastructure to clarify these and other details, but before the ministry could respond, on August 26, Armenia International Airports CJSC (AIA), the concession manager of Zvartnots and Shirak, issued a statement stating that Wizz Air will operate two flights per week on the Larnaca-Gyumri-Larnaca route from September 30 to October 25 (summer season) on Tuesdays and Saturdays, and after October 30 (winter season) on Thursdays and Sundays.

This is how Wizz Air seeks to comply with the government’s requirement to operate at least one flight per week on a new route. The requirement that the carrier must launch one flight to Gyumri is also met.

Armenia Deputy Minister of Territorial Administration and Infrastructure Armen Simonyan told Hetq that Wizz Air has shown interest in Gyumri within the framework of the support program.  

Simonyan added that as of August 28, no domestic or foreign airline had yet submitted an official application to take advantage of the support program. It should be noted, however, that the government has stipulated that airlines wishing to take advantage of the program must apply at least thirty days before the first flight along a new route.  

Simonyan also told Hetq that, in addition to Larnaca in Cyprus, Wizz Air has shown interest in flights to Armenia from several other European locations. These include Prague (Czech Republic), Beauvais (France), Hamburg and Memmingen (Germany), Bari and Naples (Italy), and Bucharest (Romania).

Wizz Air takes off from Yerevan (Zvartnots Airport FB page)

Armenia International Airports CJSC announced these flights on May 7, noting that Wizz Air is opening its base at Zvartnots, where two modern Airbus A321neo aircraft will be deployed (fulfilling another prerequisite set by the government). These planes, the longest variant of Airbus’s A320 family of single-aisle aircraft, offer a 20% reduction in fuel consumption and CO₂ emissions, as well as a 50% reduction in noise.

AIA CJSC announced that the Hungarian carrier adding eight new direct roundtrip flights from Europe to Armenia starting this October: Prague - Yerevan; Hamburg – Yerevan; Paphos – Yerevan; Nice – Yerevan; Naples – Yerevan; Bari – Yerevan; Bucharest – Yerevan, Memmingen – Yerevan.

On August 1, AIA CJS announced that Wizz Air will operate roundtrip flights connecting Beauvais (France) and Yerevan as of October 1.

For some of these destinations (which have not been operated so far or have been operated less than the government has set) Wizz Air will turn to Armenia to receive bonuses of AMD 20,000 drams for each passenger transported to Zvartnots Airport.

The Hungarian company met another of the government's preconditions in May of this year when it established a branch in Yerevan.

Top photo:  Armenian PM Nikol Pashinyan tours Gyumri’s Shirak Airport on Dec. 18, 2024 (primeminister.am)