Eznis Airways – one of the significant domestic airline in Mongolia has suspended operations on May 22, 2014 with immediate effect citing "company’s financial difficulties" caused by the harsh economic conditions.In a statement released through its official website, the Mongolian domestic carrier said the suspension would be indefinite.
The statement further says that "The management of the company and the shareholders had utilized every opportunity to retain our employees and most importantly, to maintain flight safety, however, the company is unable to proceed further due to financial inability. Therefore, the company would like to bring apologies to its staff, engineers and flight crews who dedicated their soul and time to the company and its clients”.
Some economists suspect that the airline started experiencing financial difficulties due to significantly decreased number of charter flights by mining companies who in turn have also shown signs of lower confidence and investment to the Mongolian economy. Others point at possible financial difficulty of the airline's parent company - Newtel which also owns Mongolia's largest cellphone operator - Mobicom.
During last two years, Eznis Airways tried to upgrade its service and fleet by replacing its aging Saab 340B turboprops with newer and more larger two Bombardier Q-400 and one Boeing 737.
