DECLARATION
on Developments and Intentions
in the Field of Air Services of the Republic of Armenia
The General Department of Civil Aviation (GDCA) has held vigorous debates with the World Bank on various issues of air transportation policy and continues to develop policies and principles, aimed at creating beneficial conditions for the provision of the desired safe service cost-effective services for customers by current and future carriers in the air transportation market of RA. The focal point is to apply simplified procedures within a clear policy framework that is consistent with the Government's overall economic development strategy of achieving sustained high rates of economic growth. The best possible international air links will play an important role in this matter.
This statement is being published as a draft so that the interested parties can comment on it. The government will finalize the document once all comments have been discussed and resolved. Three months is being provided for this comment period.
1. The General Department of Civil Aviation of the Republic of Armenia has initiated a range of steps focusing on Armenian aviation market development in 2004- 2005.
Early in 2004 the quota of passenger transportation on Yerevan-Moscow route, calculated by each of the parties, amounted to 96000 seats annually. In result of the negotiations held with Russian Federation Aviation authorities, the quota of passenger transportation on Yerevan-Moscow route, operated by designated carriers of the parties, (March 2004 -March 2005) was defined as 125000 passenger seats. At present, it has been renegotiated for the period of March 2005-March 2006 and, annually161000 passenger seats have been determined for one direction for carriers of each of the party. In the outcome, the air carriers make up to 8 regular flights on a daily basis on the mentioned flight route. During the talks held with Russian Federation Aviation authorities the issue of expanding the list of Russian cities open for Armenian carriers to operate regular flights was raised repeatedly. Currently, the list comprises 18 Russian cities and up to now this limitation has not been removed. This issue is a constant subject of debate during all discussions held between RA and RF Aviation authorities.
In the result of flexible air policy run by GDCA, the entry of foreign carriers into RA air transportation market has been considerably facilitated. Also the frequency of regular flights operated by foreign air carriers has been raised. Although the Agreement on Air Services concluded between Germany and Armenia allows only 2 weekly frequency, since June, 2005 the GDCA has allowed the German Lufthansa to operate regular flights of Munich-Yerevan with 3 weekly frequency. During the receipt of the permission of regular flights, Lufthansa did not retain a range of timing and procedural requirements during the process of obtaining permission for regular flights. But GDCA carried out simplified procedures and granted some extra time so that the carrier could obtain permission for flights and start regular transportation on the date planned by flight schedule.
Austrian Airlines attained its regular flights of Vienna-Yerevan during 2005 to 7 weekly frequency, instead of 3 weekly flights in the past. The British Airways currently operates with 7 weekly frequency of London - Yerevan route, instead of 3 weekly flights in 2004. Czech Airlines also raised the operated flight frequency, as a consequence of the implemented policy, thus flying 3 weekly from Yerevan to Prague instead of 2 weekly flights in the past.
Instead of the former state-managed "Armenian Airlines", today "Armavia"- 100% non- state airline is the main carrier. This air carrier also made essential development in the period of 2004-2005, which had a qualitative impact on the flights of the airline. The ownership status of the airline changed: the airline having the majority share of the Russian ownership passed its share to Armenian carrier. In summer of 2005 the Armavia Airlines operated 4 weekly flights on Yerevan-Paris route, instead of 2 weekly flights of last year. Armavia recommenced Yerevan-Amsterdam flights with 2 weekly frequency, as well as 1 weekly frequency to Frankfurt.
In the result of these developments, passenger flow of Zvartnots International Airport reached 1089000 passengers during 2004, which is 23% more than the same index of 2003. During the first seven months of 2005 Zvartnots International Airport has registered 7 % growth in the passenger flow as compared to the same period of the previous year. It is noteworthy, that 26% more passengers have been carried to Europe.
Passenger Traffic during January - July of 2004-2005 by Regions
2004 |
2005 |
Increase/decrease |
||
I-VII months |
I-VII months |
(passenger)
|
(%)
|
|
| Europe | 58767 |
74085 |
15318 |
26% |
| Middle East | 51535 |
59504 |
7969 |
15% |
| RF/Armenian airlines | 178180 |
197003 |
18823 |
10% |
| RF/Russian airlines | 212813 |
215693 |
2880 |
1.30% |
| Ukraine | 21637 |
22472 |
835 |
4% |
| Middle Asia | 2550 |
5025 |
2475 |
97% |
| Belarus | 3262 |
3465 |
203 |
6% |
| Other | 23556 |
13953 |
||
| Total | 552300 |
591200 |
38900 |
7% |
Europe
| Route | Airline | 2004 |
2005 |
Increase/decrease |
|
I-VII months |
I-VII months |
(passenger)
|
(%)
|
||
| Amsterdam | Armavia | 7656 |
3440 |
-4216 |
|
| Athens | Armavia | 2776 |
3828 |
1052 |
|
| Paris | Armavia | 12738 |
14114 |
1376 |
|
| Frankfurt | Armavia | 3404 |
2056 |
-1348 |
|
| Vienna | Ausrian | 16705 |
25970 |
9265 |
|
| London | British | 8673 |
12141 |
3468 |
|
| Prague | Czech | 6815 |
9368 |
2553 |
|
| Munich | Lufthansa | 0 |
3168 |
3168 |
|
| Total | 58767 |
74085 |
15318 |
26% |
|
"Armenia International Airports" co., who is the operator of Zvartnots International Airport, has developed a new Master Plan of the Airport in accordance to which construction of the new passenger terminal is being carried out. The arrival section of the terminal will start operation at the end of 2006, and the whole terminal will be in operation in 2007. The new terminal will vastly improve the service rendered to both departing and arriving passengers and their luggage, in accordance with international service standards. The new Master Plan of the airport has been approved by RA Government in August, 2005.
A new aviation security system has been installed in Zvartnots Airport, which allows to carry out aviation security functions in the best manner - in context of monitoring the passenger, luggage, cargo ground service, as well as aircraft and airport entrance area.
A range of adjustments have been put in place in the passenger service process, new technologies have been introduced and are applied in customs, border, registration and visa issuance sections. It is projected to also apply the fingerprint computer analysis and matching in 2006.
The General Department of Civil Aviation applies specific principles targeting improvement of cargo shipment, through encouraging Armenian cargo shippers, as well as through applying simplified procedures of discussion and approval of applications submitted by foreign shippers. At present, "Air Armenia" airline implements regular cargo shipments to European countries. In the result of bilateral negotiations held with Armavia, free competitive conditions are set for "Air Armenia".
Correspondence has been exchanged with French Aviation authorities on recognition of the version proposed by European Union on substantial ownership and effective control of airlines designated by France.
2. Future policy.
Works are underway for Armenia to adhere to the 1999 Montreal Convention for the Unification of Certain Rules for International Carriage by Air planned by 2007.
Today almost all of 40 intergovernmental agreements on air services concluded by RA Government (initialed, signed, ratified) include provision of multiple designation of airlines. And all those intergovernmental agreements, where the provision of multiple designation is missing, shall be re-negotiated during discussions to include the aforementioned provision. During negotiations of new intergovernmental agreements the GDCA will insist on inclusion of the multiple designation clause. When the Contract with Armavia and Agreements permit, the Government will welcome bids for operation of air transportation submitted by Armenian airlines, in the order specified by the RA Legislation.
In the process of air transportation regulation, the GDCA will periodically analyze the volumes of air traffic. In the outcome, it will encourage the growth of frequency and capacity in compliance with the demand of that time. It will adopt flexible and liberal position in response to propositions and assessments of individual airlines regarding customer demand, market conditions and prospects.
The GDCA, through discussing it with Armenian carrier, will seek to apply liberalization elements with regards to foreign carriers (for example, the fifth freedom right) when it is possible to evidence net economic benefits to the aviation market of Armenia and to Armenia in general.
The same approach will be used also in cargo shipment policy; moreover negotiations will be held to involve cargo shippers into Armenian aviation market and, if necessary, taking into consideration the current unsatisfactory condition of cargo shipment, we will also welcome additional designated cargo shippers demonstrating liberal agreements and approaches for individual directions or individual countries
The GDCA will welcome the World Bank support to Armenian carrier, in concluding favorable interline agreements with foreign carriers aimed at creating equal competitive field, as well as efforts targeting enrollment of additional air carriers in the cargo shipment field.
Currently, the opportunities of collaboration with United Arab Emirates, Israel, India and the United States are studied. Discussions are held with Armenian carrier to implement passenger transportation and cargo shipment to those countries in the upcoming two years and establish collaboration with air carriers of the aforesaid countries, which would lead to further expansion of RA aviation market.
RA GDCA participates in transport policy implementation provided under the national program worked out in the scope of Collaboration Agreement concluded between RA Government and European Communities and their member countries and, endorsed by the RA Government. The compliance with requirements adopted by EU, in the context of civil aviation, mainly targets flight safety and aviation security, development of air transportation market and improvement of associated activities. The legislation regulating the RA aviation activities is based on the RA Law on Aviation. In 2005 the GDCA has elaborated a new draft of the above mentioned law, which provides a more clarified and regulated relations arising from aviation activities, setting the necessary preconditions for provision of flight and aviation security, as well as further development of air transportation. It is planned to present the draft Law for discussion to the RA Government by the end of 2005 .
Works are planned to be implemented during 2006 aimed at adjusting the regulations and conditions of granting air crew evaluation certificates in conformity with EU legislative requirements. New rules will be developed for granting aircraft airworthiness certificates and recognition of foreign countries airworthiness certificates, taking as a basis the current rules of EU in the civil aviation field. To safeguard passengers' interests, "Regulation on reimbursement and aid to be rendered to passengers in case of flight delays or cancellations" will be developed.
By the end of 2005 the approval of RA membership in Eurocontrol organization is planned, and by the end of 2006 - full membership in Joint Aviation Authorities, which raises the credibility of RA aviation.
During 2007 works are projected focusing on granting air transportation licensing and defining new requirements and procedures for scheduled and non-scheduled air transportation licensing, as well as elaborating rules of allocation of slots at RA airports in compliance with EU requirements.
In its annual reports the GDCA will make public the progress in the development of Armenia's air services in terms of this policy and provide for any policy improvements required for the best possible implementation of this policy objectives.
So long as the Contract with Armavia is valid, Armavia will be expected to meet its obligations and the Government will maintain the rights granted under the Contract to Armavia. The Government will work with Armavia to ensure implementation of the future policies.
You may send your suggestions and requests about announcement to the follwing E-mail addresses:
artiom.movsesyan@aviation.am
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