As a result of EUR and USD fluctuation Russian air carriers have decided to raise air ticket prices including those towards Armenia. According to experts, the further increase in air ticket prices will cause even more recession in demand.
Russian air carriers' reps in Armenia have told ArmInfo journalist international air transportation tariffs from Russia are EUR-denominated. The tariffs change according to EUR currency. According to Transaero rep in Armenia, the recent changes took place in Jun-Jul 2015 (Yerevan-Moscow air ticket cost 99 thsd instead of 96 thsd). "Aeroflot" reps withheld comments saying that price policy was determined in Moscow. However, they have said that no recession in demand has been evidenced. Sibir (S7) airlines rep in Armenia Mushegh Sayadyan has said there has been no increase in prices. The fact that planes are half empty, he says, is conditioned by the economic crisis in Russia, not by the increase in air ticket prices.
To note, Armenia has started harshly criticizing the so-called "open skies" policy, which has actually made a number of foreign air carriers leave the market. The market is gradually being monopolized by Russian and Ukrainian companies. As a result, the tickets are gradually rising in prices. Moreover, most air carriers set nighttime flights to Yerevan, which creates additional difficulties for the tourists. In addition, the high tariffs make most Armenian passengers use the air services of neighboring Georgia. These issues have recently been discussed at a consultation with the prime minister of Armenia. ArmInfo's source has earlier informed that the number of operating air carriers in Armenia has decreased from 35 to 27 since the launch of the "open skies" policy at the end of 2013. Etihad Airlines, that provides quite an affordable and comfortable air hub at Abu Dhabi Airport, has recently announced about the suspension of its participation in Armenia's "open skies". The company's main focus was on Armenian passengers flying to the USA. According to the source, the company failed competing with the main rivals - Aeroflot, Transavia and S7, which provide more advantageous terms. For the same reason famous airlines such as "Czech Airlines" and "Al Italia" suspended flights to Armenia last year. Polish LOT is quite likely to join the aforementioned airlines.
Dmitry Gorin, the head of the Transport committee at Association of Tour Operators in Moscow, has told Interfax that on Aug 19-26 the EUR currency for air ticket prices totaled 73 rubles. On Aug 26 to Sep 2 it will make 81.5 rubles. Therefore, the air ticket tariff will be increased by 11%.