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Armenia to subsidize airlines launching new routes

Armenia to subsidize airlines launching new routes

By Alexander Pracht

The Armenian government plans to subsidize airlines that introduce flights from new destinations to the country’s airports, submitting a draft proposal for public discussion today. The bill introduces financial incentives for carriers operating previously unserved routes.  

According to the proposal, airlines will receive 15,000 drams, or roughly $37 per passenger for inbound flights to Shirak Airport in Gyumri, the country’s second largest city, and 20,000 drams, approximately $50 dollars, per passenger for flights to Zvartnots Airport in Yerevan.  

The initiative aims to boost passenger traffic, stimulate tourism, and expand Armenia’s air connectivity. While air travel to and from Armenia has grown in recent years, passenger numbers declined by 1.3% in 2024. Many Armenian and Russian airlines have already capitalized on the surge in transit travel through Yerevan after Russia lost direct air links with Western countries following its 2022 invasion of Ukraine. For a time, large numbers of Russian travelers used Yerevan as a connecting hub for flights to Europe. This effect somewhat diminished after Russia and Georgia agreed to resume direct flights in 2023, ending more than a decade-long suspension.  

If approved, the subsidy program will take effect in January 2026. The government hopes the measure will make Armenia a more attractive destination for both tourists and airlines, further integrating the country into global air travel networks. So far, Armenia still lacks direct flights connecting it with countries like the United States or the United Kingdom, and its domestic airlines are banned from flying to the European Union for failing to meet safety requirements.

Also read: Armenia’s aviation struggles: EU ban, no flag carrier, unexplained incidents

Iran’s Ambassador to Armenia, Mehdi Sobhani, said in November that direct flights from the airport in Armenia’s southern town of Kapan should be launched to various Iranian cities. This airport, reopened in 2023 after being abandoned since the late 1980s, currently links Armenia’s southernmost region with Yerevan, operating three passenger flights each week. The facility has so far served no scheduled international flights.

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