To this day, there are still debates among academics about the economic efficiency in civil aviation of leasing rather than purchasing an aircraft by an air carrier from another air carrier or other entity. Leasing is attractive because of its savings and flexibility compared to purchasing.

Among the advantages of leasing :

Reducing the initial cost burden and level of debt

tax benefits

meeting the seasonal demand for additional flights

facilitating the market penetration of new air carriers.

Nevertheless, no matter what theoretical arguments are being made, the practice of aircraft leasing has experienced a significant growth over the last twenty years.

Aircraft registered in Armenia are both nominally and listed as Armenian fleet, since “aircraft registered in the Aircraft Register of Armenia have the national ownership of the Republic of Armenia.

The majority of the fleet of Armenian airlines are cargo planes, and the cargo transportation is mostly profitable. As for passenger transportation, the airlines operating in Armenia have dramatically increased their volumes after the liberalization of the airspace.

In 2016, nine companies operating aircraft were registered in Armenia, but some operated abroad, some did not operate at all, none of them operated within the country. The reasons were the lack of permits and licenses and the lack of ability to ensure technical and aviation safety. The lack of flight permits was due to the clash of interests of government agencies. The General Directorate of Civil Aviation was authorized to authorize access to the market for new air carriers, but did not do so, and the government did not take steps to investigate the situation.

As a result Armenian companies work in foreign countries where the rates of transportation are growing, the economies of these countries in the sphere of air transportation are developing, which cannot be said about Armenia.

Armenia needs its huge air fleet to serve its economy, replenishing the state budget, and increasing the welfare of its residents.

In this connection it is necessary to develop a mechanism, which will make it reasonable for companies to work within the country, and not outside it, especially as the activity outside the territory of Armenia creates certain difficulties for finding out the volume of income generated by the transactions made and tax obligations paid to the budget. Armenian airlines are operating abroad only because they have no opportunity to operate inside the country. The concept on developing small aviation was adopted back in 2009, but so far there is no small aviation in Armenia.

As we can see, aircraft leasing in the Republic of Armenia is still at the stage of development, it is a relatively free field, attractive for Armenian and foreign investors and airlines.