[2] On March 29, 2013, Armavia announced the decision to begin filing bankruptcy proceedings[3] and suspend operations on 1 April 2013.

Later, it bought an additional 18% of shares from Mika Armenia Trading company owned by prominent Armenian businessman Mikhail Baghdasarov.

In 2005, Mikhail Baghdasarov's Mika Armenia Trading bought S7's 68% of shares and became Armavia's principal shareholder with a 100% stake in the company.

On 29 March 2013, Armavia ceased flying and filed for bankruptcy after two years of financial depression.

Armavia had always shown interest in serving Los Angeles (California)[7] with non-stop flights from Yerevan, but had not revealed further details on the matter.

[14] On 7 August 2012, it was reported that Armavia had decided to return its remaining Sukhoi Superjet 100 to the manufacturer, citing reliability concerns.

The fatal crash was a controlled flight into terrain accident, killing all 105 passengers and 8 crew on board.