This is a hot topic, and I waited for my internet to go off, so I can find time and force my lazy personality write about it.
Armenia has a huge potential for becoming the low cost flights capital in the region. It has a beautiful, fully equipped and effectively working Zvartnots airport in 15 minutes of drive from Yerevan, probably the best airport in the region. So, becoming a hub for low cost operators is very likely.
I mean, come on. Kutaisi-Milan flight costs EUR 40, people go to Kutaisi by car and then fly to Milan from there. Many of them. Make Yerevan-Milan flight EUR 100 and they will not go to Kutaisi anymore.
One obstacle to low cost flights in Armenia is the visa-free regime with EU. Actually, the absence of that. EU seems really blind today, as it does not see cultural, religious, educational and behavioral similarities between Armenia and the remaining part of Europe. Odd, to say the least.
Another obstacle is Zvartnots airport management fees. Yes, the airport is of the best international standards and fees are also comparable to those in the best cities of the planet. This makes flights expensive. If the airport management reconsiders fees, it will make more money on the quantity of traveling people. Quantity also brings duty free trade and paying numerous other services too.
I am pretty sure low cost operators flying to/from Armenia will be a reality soon, and I think this will come in parallel with visa-free regime and Zvartnots management reform. Just wait.