Dollar weakening everywhere

08/12/2006

According to our information, starting from December airline companies will make their calculations not basing on USD, but on Euro. “This is not done in our country only, but all the Russian, European and other international companies are going to transform to Euro” said director of “Armavia” company Norayr Belluyan during our phone conversation.
 
The Russian airline companies transformed to Euro on December 1. As for the Armenian companies, they are discussing the issue and haven’t made a final decision yet. The head of the Russian “Aeroflot” company is in Moscow now. Mr. Belluyan is not in Armenia either.

The mentioned requirement was developed by IATA (International Air Transportation Association). The airline companies operating in Armenia are members of NATO, thus the mentioned requirements concerns them too. The reason is the weakening of dollar. For instance, in “Armavia” company the basic rate for one Euro is going to be 490 dram, indeed the exchange rate in currency exchange rate points is about 479-482 dram. Currently the basic exchange rate for one dollar in that company is 380 dram in case when the mentioned exchange rate is about 360-362 in currency exchange points. For example, if a ticket costs $200, passengers have to pay 76.000 dram for it, while the market price of $200 is 72.000 dram. In fact, airline companies have their own exchange rate, which gives them an opportunity to make extra money. Concerning this Norayr Belluyan said that following the change of the currency for airline ticket price calculation, ticket prices will not change.