Armenia must submit a new name for their national airline by today. The Armenian National Interest Fund and Air Arabia,
Armenia must submit a new name for their national airline by today.
The Armenian National Interest Fund and Air Arabia, a UAE-based airline, penned a deal to create a new national airline on July 14, 2021. The low-cost passenger airline will be based in Yerevan’s Zvartnots International Airport and is meant to boost travel and tourism to the country, promoting employment and job growth.
Armenia’s economy has undergone significant contraction due to the Nagorno-Karabakh conflict and the pandemic. In 2020, the economy contracted an estimated 7.6%, with the important tourism sector hit especially hard. While the economy has rebounded some 4%, air travel is hoped to be the key to spur further growth by increasing Armenia’s international connectivity and tourism. However, Armenia has a history of creating airlines to boost tourism and connectivity, only to see them fail.
The new airline faces a tough road ahead and will likely do little to spark economic growth. The airline faces stiff competition from numerous other cheap European airlines. Short to medium-term, economic recovery will largely depend on increased global vaccination efforts, which will allow for more tourism. However, Yerevan may still fail to attract travelers to their country and airline.
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