Air company Fly Arna declared bankrupt

PanARMENIAN.Net - The Armenian National Airlines CJSC, operating under the Fly Arna brand, was declared bankrupt by the Bankruptcy Court on January 27, according to Hetq.

The airline was established in December 2021 and began flights in July 2022. By January 2024, operations had ceased, and in March, its final closure was announced.

Fly Arna’s shareholders included the Armenian National Interests Fund (ANIF), International Business Company (FZE) – a subsidiary of the Emirati Air Arabia, and Lebanese-Armenian businessman Varoujan Nergizian. The airline was managed by Air Arabia, with Anthony Price, an Air Arabia representative, serving as CEO.

In 2023, serious disagreements arose between ANIF and Air Arabia, escalating into an open confrontation by early 2024. While discussions on the liquidation process were ongoing, the airline’s aircraft lessor, Irish-based Impact Aviation Services Limited, filed for Fly Arna’s bankruptcy.

Impact Aviation Services Limited, founded in 2022 and fully owned by Air Arabia, submitted a request to the Armenian Bankruptcy Court in August 2024, citing a $778,000 debt. The court initially rejected the claim due to documentation issues, but after resubmission in September, it was accepted.

During the bankruptcy proceedings, it was revealed that Fly Arna had not contested the bankruptcy claims. Additionally, attempts to serve the necessary legal documents failed, as the company’s location was unknown. In October 2024, the court issued an order to locate the company, its director, assets, and financial records.

The last CEO, Anthony Price, had left Armenia, and enforcement officers were unable to locate the company’s leadership or assets. Due to these circumstances, the court proceeded with a simplified bankruptcy process, officially declaring the airline bankrupt on January 27.

The Irish company’s claim was based on leasing agreements signed in 2022 for Airbus A320 aircraft. Fly Arna had accumulated unpaid lease fees for EK-YRB and EK-YRC planes, leading the court to rule in favor of the lessor.

Given the bankruptcy case progress, liquidation proceedings are expected to begin soon. If any assets are discovered, they will be auctioned to settle creditor claims. A final declaration of the company’s dissolution will follow.

Previously, Armenian Airlines underwent a similar process, with its bankruptcy case lasting 17 years. Currently, Armavia, Air Armenia, and Atlantis European Airways face similar legal challenges.