Armenia seeks foreign guidance in wake of Armavia collapse

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The Armenian government will solicit advice from outside aviation specialists as part of an ongoing initiative to revive the country's airline industry.

Speaking at parliamentary hearings, Prime Minister Tigran Sargsyan acknowledged that the cabinet has yet to decide its preferred course of action following the bankruptcy of flag carrier Armavia.

"The more we deliberate it, the more we realise the lack of competence to find a solution on our own," he said. "Therefore, we've decided to invite international experts to help."

There is public pressure on the government to set up a national airline that is majority-owned and controlled by the state. The other proposal is to fully liberalise the airline industry, with the state solely acting as a regulator.

"There are also a few intermediate variants under discussion. But we don't have unanimity on any of them," says Sargsyan. "Hopefully, we'll manage to choose the optimal model by looking at foreign experience."

Privately-owned Armavia declared bankruptcy in March, citing its inability to pay off mounting debts.