The management of Air Armenia national carrier made a decision about financial restructuring and changing the schedule, with flights to be suspended till at least December 20.

As ARKA reported citing Air Armenia press office, media allegations about problems in the company led to an 80% reduction in sales, and, consequently, a critical drop in profits, which makes operation of flights impossible at the moment.

The company will focus on most demanded directions, try to attract new funds, get back its two A320 planes that are currently in maintenance and resume flights as per the schedule from December 20, the report said.

The company made the decision after a year of operations in the Armenian market and passenger flights to Russia and Europe.

This year was full of achievements and unpleasant surprises, with attempts to hamper company’s operations to create favorable conditions for overseas air companies, the report said.

Apart from this, the statement by the Russian state corporation of air traffic on suspension of cooperation with Air Armenia caused serious financial damage to the company, undermining its authority, the report said.

The allegations created panic among passengers, debtors and creditors. Many passengers returned their tickets, creditors canceled earlier agreements and demanded their money back, debtors refused to pay costs of the tickets bought before, according to the report.

Apart from this, at present the company has only one aircraft to operate all the flights, with the others are undergoing technical maintenance in Holland.

Air Armenia is the only company in the local market of air transportation. Armenia’s previous national carrier Armavia went bankrupt in April 2013.