Armenia's national airline, Armavia, has declared the start of bankruptcy proceedings.
The carrier said in Friday's statement that it will halt flights next week. Armavia currently has 14 aircraft conducting more than 100 flights a week to 20 countries.
Russia's civil aviation authority said Armavia has an outstanding debt of $1.4 million to Moscow's Vnukovo airport and smaller debts to two other airports in southern Russia.
Armavia's owner, Mikhail Bagdasarov, announced his intention to sell the company last year, but has failed to find a buyer. Bagdasarov attributed Armavia's troubles to the global economic downturn and losses from using a new Russian-made Sukhoi superjet.
The landlocked ex-Soviet nation's economy has been hobbled by the longstanding closure of its borders with Azerbaijan and Turkey over the conflict Nagorno-Karabakh.