News - Air Arabia initiates arbitration against Armenia over Fly Arna dispute

Arab airline Air Arabia is preparing to start an arbitration process against Armenia. Global Arbitration Review reports. The reason is the Armenian airline Fly Arna, one of the owners of which was International Business Company (FZE), affiliated with Air Arabia, which operates flights from Sharjah. Earlier, Armenian News-NEWS.am wrote that Arab International Business Company, interconnected with Air Arabia, has applied to the Armenian Public Interest Foundation (ANIF), saying it is preparing to initiate international arbitration proceedings against the company and Armenia. The reason is a financial dispute related to the national air carrier Fly Arna, which is a joint venture between ANIF, which is in the process of disbanding, and the Air Arabia group. Armenian national carrier was registered in December 2021, and scheduled flights started in July 2022. However, a year and a half later, in January 2024, the national carrier ceased its operations. 49% of the shares are owned by Armenia State Interests Fund CJSC, and 49% are owned by ՛՛International Business Company,՛՛ an Arab company interconnected with Air Arabia. The Corruption Prevention Commission and the State Control Service in 2022-2023 found alleged abuses in ANIF. Later, criminal proceedings were initiated at the Investigative Committee for causing property damage on a large scale and embezzlement on a large scale of entrusted property as a result of abuse of authority at ANIF. At the government session on May 23, 2024, the authority to manage 100% share of “State Interests Fund of Armenia” CJSC was transferred to the State Property Management Committee in order to implement the process of terminating the activities of ANIF.