Armenia’s government has approved a major extension of the concession agreement for Yerevan’s Zvartnots International Airport, pushing the contract’s expiry to the end of 2067 in exchange for significant investment in the country’s aviation infrastructure. The decision was adopted at a cabinet meeting on Thursday.
Under the revised agreement, Corporacion America, owned by Argentine-Armenian businessman Eduardo Eurnekian, will invest approximately $425 million over the next seven years to expand passenger and cargo infrastructure at Zvartnots and Shirak Airport in Gyumri, Armenia’s second-largest city.
The revised deal also expands Corporacion America’s role in Armenia’s regional aviation network. The company will assume management of Syunik Airport in the southern town of Kapan. The airport currently operates only limited domestic flights to and from Yerevan and lacks the infrastructure necessary for international service.
Syunik Airport is jointly owned by the Armenian government and the Zangezur Copper and Molybdenum Combine. Speaking on Thursday, Deputy Prime Minister Mher Grigoryan said that upgrading the airport to international status would require additional investment. Iranian officials have previously expressed interest in launching air routes to Kapan.
The original concession agreement, signed in 2001, was previously set to expire in 2031. The extension to 2067 introduces a revised tariff mechanism, under which airport fees will be adjusted annually based on average inflation rates in the United States and Europe, as well as Armenia’s consumer price index.
Following the agreement’s approval, construction of a new terminal at Zvartnots is expected to begin, with key investment obligations scheduled to be completed by 2033.
Zvartnots Airport has been operated by Corporacion America under concession for more than two decades, with the agreement amended multiple times to reflect changes in passenger volumes, financing conditions, and regulatory requirements.
The extension comes amid a sharp post-pandemic surge in passenger traffic. In 2025, Zvartnots International Airport served a record 5,615,789 passengers, surpassing its 2023 figure of 5,330,308, according to the Republic of Armenia Civil Aviation Committee.
Monthly statistics show February as the least active month, while August recorded an unprecedented 667,844 passengers. The current terminal was originally designed for 4 million passengers, highlighting the urgent need for expansion.
The concession agreement, which was originally set to expire in 2031, introduces a revised tariff mechanism, with fees adjusted annually based on inflation in the United States and Europe, as well as Armenia’s consumer price index.
Construction of a new terminal at Zvartnots is expected to begin soon, with key obligations scheduled for completion by 2033.
In October 2025, the airport’s operator, Armenia International Airports, announced plans to invest $500 million over the next decade to further expand Zvartnots and meet growing demand. CEO Marcelo Wenden described the project as one of the company’s largest yet, aiming to double the size of the airport.
“Our team has worked tirelessly, modernizing equipment, expanding training, and hiring new staff, but our current capacities are extremely overloaded. Expansion is vital to ensure the safety, comfort, and efficiency of every traveler passing through Armenia’s main gateway,” Wenden said.
