The Armenian government has approved a proposal to amend its 2001 concession agreement with Corporación América S.A. for airport operations in the country. The fifth amendment extends the agreement until December 31, 2067, and aims to enhance the capacity of Armenia’s international airports, upgrade infrastructure, and improve service quality. Notably, it creates conditions for turning Kapan’s “Syunik” Airport into an international airport.
Restrictions on Kapan Airport under the concession will be lifted, enabling international operations.
The concessionaire has committed to approximately $425 million in capital investments. A master plan and investment program, including those already implemented since 2023, will be coordinated with the government.
Tariff adjustments will follow an annual indexation mechanism based on the average of U.S., European, and Armenian consumer price indices. A new clause stipulates that if, for two consecutive years, annual passenger traffic drops below 4 million due to reasons beyond the concessionaire’s control, the government must compensate losses through tariff adjustments for up to three years.
The government also authorized Deputy Prime Minister Mher Grigoryan to sign the agreement amendment within one month. The initiative is expected to improve airport infrastructure, expand flight routes, and enhance passenger services.
Deputy Minister of Territorial Administration and Infrastructure Armen Simonyan stated that the master plan is expected by January 31. He noted the investments should be completed by 2033. Simonyan added that international airports in Armenia saw a record 5.754 million passengers in 2025, a 7.5% increase over 2024, underscoring the need to expand infrastructure and services.
Commenting on the decision, Mher Grigoryan stated that once the amendment is signed, Kapan Airport can immediately be operated as an international airport.
“In other words, Armenia will have a second international airport,” he said.
