Armenia’s government has approved changes to its airport concession agreement that pave the way for major infrastructure upgrades and the transformation of Kapan’s Syunik airport into the country’s third international airport, officials said on January 22.

The cabinet adopted a resolution amending the concession deal with Argentina-based operator Corporación América, which manages Armenia’s main airports, including Yerevan’s Zvartnots.

The revised agreement extends the concession until December 31, 2067, and commits the operator to capital investments of about $425mn, aimed at expanding capacity, improving infrastructure and raising service standards across the network.

Deputy Prime Minister Mher Grigoryan said the changes would allow Kapan airport, currently serving only domestic flights, to start operating as an international airport once the amendment is signed.

“That means Armenia will have a third international airport,” he said.

Under the new terms, several clauses in the original agreement were scrapped, including provisions guaranteeing a minimum internal rate of return and the right to indefinite extension. The government and the concessionaire also declared that they have no outstanding financial obligations to each other at the time of signing.

Restrictions on the use of Kapan airport were removed, while future tariff changes will be limited to annual adjustments linked to inflation indicators in the United States, Europe and Armenia.

The deal also includes a mechanism for compensating the operator if passenger numbers fall below 4mn for two consecutive years, provided the decline is not caused by the concessionaire. In such cases, compensation would be applied through tariff adjustments for up to three years.

Deputy Minister of Territorial Administration and Infrastructure Armen Simonyan said the operator is expected to submit a master plan by January 31, with most investments to be completed by 2033.

He added that passenger traffic at Armenia’s international airports reached 5.75mn in 2025, up 7.5% from 2024, underscoring the need for expanded infrastructure.

The government said improved airport services and new routes were expected to boost travel and strengthen Armenia’s connectivity with regional and international destinations.