Alexander Pracht
Armenia’s government has approved an extension of the concession agreement for Yerevan’s Zvartnots Airport, pushing the contract’s expiry to the end of 2067 in exchange for major investments. The decision was adopted at a cabinet meeting on Thursday.
Corporacion America, owned by Argentine-Armenian businessman Eduardo Eurnekian, will invest approximately $425 million to expand passenger and cargo infrastructure at both Zvartnots and Shirak Airport in Gyumri, Armenia’s second largest city, during the next seven years.
The government said the expansion is driven by a sharp post-COVID rise in passenger traffic. While the current terminal was designed to handle up to 4 million passengers annually, the figure reached 5.6 million in 2025.
The agreement, previously valid through 2031, has been extended to 2067. Airport tariffs will now be adjusted annually, tied to average inflation figures in the United States and Europe, as well as Armenia’s consumer price index.
Once approved, the construction of a new terminal at Zvartnots is expected to begin, with completion of key obligations targeted by 2033.
Another major change is that the Argentine operator will assume management of Syunik Airport in the southern Armenian town of Kapan.
The airport has so far handled only sporadic domestic flights to and from Yerevan and is co-owned by the Armenian government and the Zangezur Copper and Molybdenum Combine, a local mining company. It currently lacks the infrastructure required for international operations.
Speaking on Thursday, Deputy Prime Minister Mher Grigoryan said the airport could be upgraded to international status, but that doing so would require additional investment. Iranian officials have previously expressed interest in launching air routes to Kapan.
Zvartnots airport has been operated under concession by Corporacion America since 2001. The original agreement has been amended several times as traffic volumes, financing conditions, and regulatory priorities evolved.
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Negotiations over revising the concession agreement have been ongoing since at least May 2024, when Grigoryan publicly acknowledged “difficulties” in the talks. At the time, he stressed that expanding the existing terminal would not be sufficient and that a new terminal would be required.
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