Aviation

US national airline declares bankruptcy

Armenia's last national airline, Armavia, on Monday ceased operations and launched bankruptcy procedures due to grave financial problems, the company said.

"Over the last three years, the owner of Armavia airline has been investing finances from (his) other businesses in order to support the air carrier," Armavia said in a statement.

"However, the current situation makes it impossible to continue working this way." Founded in 1996 by Armenian businessman Mikhail Bagdasarov, Armavia owns one Airbus A320, three Boeing 737, and four medium-range planes.

The company linked its inability to pay debts to the consequences of the world economic crisis that has hit the aviation industry hard and has caused the bankruptcy or liquidation of several major carriers such as American Airlines and Russia's Kuban.

Russia's aviation authority Rosaviatsiya said that Armavia owed more than $1.3 million (1.0 million euros) to airports and more than $250,000to air traffic services in Russia.

Armavia served 48 destinations in Europe, Asia, and North Africa.

Armenia, an ex-Soviet republic, is a landlocked country with neighbours that include traditional foes Turkey and Azerbaijan With air links critical to maintaining international contacts, it is unclear what will fill the void left by Armavia's collapse.

The company's bankruptcy leaves Armenia without a national air carrier, since the other state-owned carrier, Armenian Airlines, went bankrupt in 2003.

AFP

Emirates hails Qantas tie-up as aviation growth model

Emirates airlines hailed on Monday its tie-up with Qantas as a growth model, after the first flight of the Australian carrier to its new international hub in Dubai.

"This is certainly a growth model... for Emirates and for Qantas," Emirates president Tim Clark told reporters in Dubai, after he flew from Sydney along with Qantas CEO Alan Joyce and the Australian Minister of Transport Anthony Albanese.

"Of course we do expect to grow the income out of the Oceania," said the boss of the Dubai-owned carrier, indicating that Emirates has been increasingflights to Australia and New Zealand.

Joyce remained upbeat about the joint venture with Emirates, one of the world's fastest growing airlines.

"It has been an amazing day," he said.

"Our passengers were extremely excited about this partnership," he said, describing the mood on the first flight to Dubai.

By using Dubai instead of Singapore as a hub, average journey times on Qantas flights to Europe have been cut by more than two hours.

The tie-up, approved last week by Australia's competition watchdog, allows the two airlines to combine operations for an initial period of five years, including coordinating ticket prices and schedules.

The alliance is seen as vital to the sustainability of Qantas, which last year posted its first annual deficit since privatisation in 1995 due to tougher competition and high fuel costs for its international arm.

Qantas will also use Emirates Concourse A, the first world's facility dedicated to serving the Airbus A380 superjumbos. Dubai airport is now the world's second busiest airport for international passenger throughput.

For Emirates customers, the deal opens up Qantas's Australian domestic network of more than 50 destinations.

Two Airbus A380s from both carriers made a dramatic tandem flight over the Sydney Harbour Bridge Sunday to launch the new partnership, hailed by Qantas as a "seismic shift" in aviation.

AFP

Cairo airport to partly close as economic crisis bites

Cairo's international airport will be partly closed at night due to fewer incoming flights and to save energy, reports said on Monday, highlighting the economic crisis sweeping Egypt.

Two runways will be closed for four hours starting from 1.30 am (2330 GMT) "in order to save energy", said civil aviation minister Wael al-Maadawi in statements carried by the press.

Only one runway, at Terminal 3-- which serves as a regional hub -- will remain open 24 hours a day.

Maadawi said airport revenues were not enough to cover the costs of keeping the runways open.

The decision, which comes into effect in June, "could be seen as an honest reflection of the deteriorating economic condition in Egypt," said an editorial in the state-owned English language daily The Egyptian Gazette.

It also comes at a time of increasingly frequent power cuts aimed at saving energy.

The oil ministry last week admitted it does not have money to buy enough fuel for all of its power stations. Fuel-laden ships are docked at Egyptian ports but have not unloaded their cargo because there are no funds, it added. "How will all the different utilities, industrial ventures and housing services cope with a major drop in electricity production and distribution during the summer season?" asked the Gazette.

The unrest which accompanied the uprising that toppled Hosni Mubarak in 2011 caused a significant drop in revenue generated by the once-lucrative tourism industry.

AFP