Ukraine International did approach the Government of Ukraine with a letter expressing deep concern with the performance of air transport industry of Ukraine, during the current crisis, and proposing a number of contingency measures that, according to the airline`s analysis, would increase sustainability of both the industry and Ukraine`s national carrier – Ukraine International Airlines.
UIA is the leading Ukrainian carrier. Its operations directly depend on the political and economic situation in the country. Historically, Ukraine has never been under such unprecedented pressure. Passenger transportation declined dramatically (e.g. in August 2014 traffic declined by over 27% compared to the same period last year).
Donetsk International airport and Luhansk International airport are closed. Ukrainian carriers are denied access to Crimea – a market that traditionally generated strong domestic and international passenger traffic. Moreover, the airspace over the Autonomous Republic of Crimea and Eastern Ukraine is restricted, while the Russian Federation banned Ukrainian carriers from operating transit flights over the Russian territory, forcing them to significantly lengthen eastbound flights` routes.
Passenger traffic between Ukraine and the Russian Federation has reduced dramatically. Meanwhile, Ukrainian carriers are forced to offset the extra costs driven by the UAH unprecedented devaluation of 60%. Consumer demand for traveling abroad has reduced accordingly. Therefore, the airlines and airports of Ukraine as well as Ukrainian State Air Traffic Services Enterprise suffer dramatic losses.
UIA management and shareholders introduce every contingency measure possible. However, sustainability of the Ukrainian aviation industry would be ensured by timely governmental support.
The management sees that most Governments worldwide, including the US and Europe, have provided financial support to sustain their airlines and air transport infrastructure. Ukraine should do the same, UIA told.
Approaching the Cabinet of Ministers of Ukraine with a letter Ukraine International clearly outlined its vision and expressed readiness to cooperate with the Government of Ukraine, ministries and governmental agencies to sustain the air transport industry of Ukraine. The airline and the Government should join efforts to maintain the well-developed route network and to protect the basic national interests of Ukraine.