Major Airport Infrastructure Improvements Coming to Armenia with New Concession Agreement

Published on
January 23, 2026

Corporación América Airports (CAAP) has secured a significant extension to its concession agreement for Armenia’s Zvartnots and Gyumri Shirak International Airports. The revised agreement marks an important milestone for the company and will help secure the airports’ future development and operational improvements.

Key Terms of the Extension

CAAP’s Armenian subsidiary, Armenia International Airports CJSC (AIA), signed an amendment with the Government of Armenia to extend the airport concession for an additional 35 years, now lasting until December 31, 2067. The extension also allows for potential future discussions on further extensions, depending on mutual agreement.

Inflation-Linked Tariff System

A significant change in the agreement is the shift from the previous single-till tariff structure to an inflation-linked regime. Starting in April 2027, tariffs will adjust annually according to inflation indices from Armenia, the United States, and the European Union, as well as fluctuating exchange rates. This transition aims to ensure the financial stability of the concession, especially in the face of changing economic conditions.

Master Plan and Investment Plans

In line with the updated agreement, AIA is required to submit a new Master Plan by January 31, 2026. The plan will include a comprehensive $425 million capital investment program to improve infrastructure and enhance operational capacity at Zvartnots International Airport. This initiative will ensure the airport can accommodate growing passenger traffic and enhance long-term capacity. The program will span through 2033, with the plan updated every five years.

Economic Equilibrium and Compensation Mechanisms

The new agreement includes a framework for maintaining economic balance. AIA will be compensated for various scenarios, including force majeure events, declines in passenger traffic, regulatory changes, and additional capital investments beyond the original plan. This compensation may come through tariff adjustments or further extension of the concession term. This ensures the airport’s financial health even in the face of unforeseen events or changes in market conditions.

Expanding Commercial Opportunities

In addition to infrastructure upgrades, the amendment clarifies AIA’s exclusive rights to operate a range of commercial activities. This includes the exploitation of aeronautical and non-aeronautical services, such as logistics platforms, free economic zones, and potential eVTOL (electric vertical take-off and landing) infrastructure for future vertiport operations. This provision will enable AIA to diversify revenue streams and tap into emerging markets like urban air mobility.

Future Airport Development and Modernization

The amended agreement will support the continued modernization of Armenia’s airport infrastructure. With the updated framework, CAAP is poised to enhance operational standards at Zvartnots and Gyumri Shirak Airports. The long-term visibility offered by the extension will enable CAAP to plan and implement large-scale improvements over the coming decades, securing the airports’ status as key transportation hubs in the region.

Impact on Passengers and Travelers

For travelers, the extension of the concession and the associated infrastructure upgrades offer promising benefits. With a significant capital investment planned for the next several years, passengers can expect enhanced services, better facilities, and improved overall airport experiences. Additionally, the introduction of inflation-linked tariffs will bring more stability and predictability in service costs, which could help reduce unexpected price hikes for passengers in the future.

Conclusion

The changes to the concession agreement between Corporación América Airports and the Government of Armenia showcases a focus on the future growth and the concession agreements at the Armenia international airports. The additional agreements and new financing. Lets CAAP focus on the construction of infrastructures, operational improvements, and the enhancement of services to the passengers. Furthermore, this shift improves the available competitive services for the future of the sector and international travel services for the Armenia aviaiton sector.