Profitable until 1997, Armenian Airlines began a decline in 1998 which executive director Arsen Avetisian blamed on the 1998 Russian financial crisis. Additionally, technical problems with its sole Airbus A310 helped lead the company towards financial problems. The company began to join forces with Belgian operator VG Airlines (later renamed Delsey Airlines); but the Belgian carrier had to file for bankruptcy on November 5, 2002. Armenian Airlines was reported to be looking for cooperation with Armenian International Airways to continue or restart its flights into Europe. When Armavia (which was owned by Siberia Airlines) entered into an agreement with the Armenian government and was granted most of Armenian Airlines' flight rights, including the lucrative Yerevan to Moscow route, Armenian Airlines was unable to recover, and officially declared bankruptcy on April 15, 2003.