Armenia Approves New Airport Deal That Could Open Syunik to International Flights

Armenia’s government has approved a major change to its airport management agreement that could allow the Syunik Airport in the town of Kapan to begin serving international flights in the future. The decision was made at a Cabinet meeting on January 22 and involves a new amendment to the long-standing concession contract with Corporacion America S.A., the company that operates the country’s main airports in Yerevan and Gyumri.

The original concession agreement between Armenia and Corporacion America S.A. was signed on December 17, 2001. Since then, the contract has been modified several times. The newly approved fifth amendment introduces significant changes to the financial and legal terms of the deal and expands the company’s responsibilities to include the airport in Kapan, located in the southeastern Syunik Province.

Under the updated agreement, earlier provisions that guaranteed specific profitability levels and compensation formulas for the operator have been canceled. A clause that allowed the contract to be extended without a fixed end date has also been removed. Armenian officials stated that, as of the signing of the new extension transaction, neither the government nor the concessionaire has outstanding financial claims against the other.

One of the most important parts of the amendment is Corporacion America S.A.’s pledge to invest a large sum in Armenia’s airport system over the next several years. The company has committed to putting $425 million into capital projects by 2033. It will also take over management of the Kapan airport, which until now has not been included in the same framework as the country’s two main international hubs.

“The restrictions of the concession agreement on Kapan’s Syunik airport are being removed, and the term of the concession agreement is extended until the end of 2067. The concessionaire is obligated to make capital investments totaling $425 million, and a master plan and investment program will be submitted for government approval,” said Armenia’s Deputy Minister of Territorial Administration and Infrastructure, Armen Simonyan.

The amendment also clarifies how the government and the operator would share risks if air travel in Armenia drops sharply. If passenger numbers across all airports managed by the concessionaire fall below four million per year for two years in a row, and this happens through no fault of the company, the state would have to help cover losses. This support would come through tariff adjustments and could last for up to three years. At the same time, the agreement requires that when the concession period ends, or if it is terminated early, the operator must return the airports and all related assets to the Armenian government in fully working condition.

Another section of the deal focuses on service quality and infrastructure. “It is reaffirmed that both the airport infrastructure and its operation must meet international first-class standards throughout the entire period,” Simonyan said. He added that all of the planned investments are expected to be completed by 2033.

During the Cabinet discussion, Deputy Prime Minister Mher Grigoryan raised a key question about what the changes could mean for the future of the Kapan facility. He asked whether, once the amendment is signed, Syunik Airport could legally operate as an international airport, which would give Armenia a third international gateway alongside Zvartnots in Yerevan and Shirak Airport in Gyumri.

Simonyan responded that the amendment creates that possibility. “Such a legal basis is being created. Under the current concession agreement there is a limitation that if the government decides to convert any airport within a 250-km radius of Zvartnots into a local or international airport, the incumbent concessionaire has priority rights to manage that airport. In this case, Kapan’s Syunik airport is excluded from that regulation under this amendment.”

He explained that, from a legal standpoint, the airport could indeed receive international status once the new terms are in effect. However, he also noted that legal permission alone would not be enough to start international operations. To handle foreign flights, the airport would still need major upgrades and the installation of proper systems for border control, customs, and other mandatory services required for international travel.

If these investments move forward as planned, the transformation of Syunik Airport could have important implications for Armenia’s southern region. An international airport in Kapan could improve transport links, support economic activity, and make the area more accessible to visitors and business travelers from abroad. For now, the government’s approval of the amended concession agreement marks the first formal step toward that possibility, setting the framework for long-term investment and expanded airport operations in the years ahead.

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