THE EFFECTS OF INTERNATIONAL AIR SERVICES LIBERALIZATION IN THE REPUBLIC OF ARMENIA

https://doi.org/10.59982/18294359-26.1-om-08

Abstract

Within the context of the policy pursued by the Government of the Republic of Armenia, the article examines the effects, current state, and development prospects of international air services liberalization in Armenia and select European countries under ‘Open Skies’ policy conditions.          

The need to increase the efficiency of air transport and service activities was emphasized, in terms of GDP, employment, tourism, and air connectivity development.

      The study further examines the evolving trends in air transport agreements and analyzes the key performance indicators of air transport services, including airlines, airports, and air navigation service providers. Particular emphasis is placed on assessing their contribution to market development, operational efficiency, connectivity, and the overall competitiveness of the aviation sector under conditions of air transport liberalization.

     It has been substantiated that the liberalization of air transportation in the Republic of Armenia has had a significant impact on the improvement of the activities of airlines, airports, and navigation services.
The studies have revealed that:

• Armenia’s aviation sector, which has been significantly affected by the “open skies” policy, aims to stimulate economic growth by boosting tourism and air transport, even though it constitutes a a minor share of the overall economy,
• The activities of airlines registered in the Republic of Armenia have had virtually no effect on GDP growth. This is due to the flight ban imposed by the European Commission/EASA on operating within the EU, which has restricted the geographic scope of flights and, consequently, exerts a direct negative impact on GDP and employment growth.
• As a result of investments, modernization, and other advancements, the volume of jobs at Zvartnots International Airport supports the creation of thousands of positions, with a workforce reaching up to 5,000 employees, thereby exerting a positive impact on GDP through tourism, trade, and employment.
• Following operational advancements, the volume of positions at the ‘Hayatsnavigatsia’ (Armats) company supports job creation with a workforce of up to 1,000 employees, which exerts a positive impact on GDP through employment
• In 2023, aviation-enabled tourism accounted for 13.2% of the country’s GDP. International visitors spent an average of $776.9 to $1,000 per capita

It was argued that the liberalization of air transport has significantly contributed to the development of air communication and tourism, and at the same time has not contributed to the growth of employment, unlike the countries mentioned.

The positive effects of the liberalization process of air transport on the development of the air transport market, the expansion of the geography of flights, and the growth of jobs and GDP were discussed.

Keywords: Air transport, liberalization, open skies, services, tourism, economic consequences, air connectivity.

PAGES : 102-114

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