Zaporizhia and Lviv international airports, the Ukrainian State Air Traffic Services Enterprise (UkSATSE), Azur Air Ukraine and SkyUp Airlines have sent a joint letter to the president, the prime minister and the Minister of Infrastructure of Ukraine with a request for state support for the aviation industry amid pandemic.
“Already today, judging by the losses incurred by the entire aviation market, it is possible to predict not only a complicated recovery process, but also the non-return of many participants to work in principle. The industry itself may be in danger of extinction,” the report says.
The companies note a serious lack of resources for fulfilling financial obligations to pay wages, service loans, make lease payments, under agreements with foreign partners, etc.
The airlines have compiled a list of measures adapted to Ukrainian realities that, in their opinion, must be taken to preserve the aviation industry. In particular, they ask to provide the industry with irrevocable financial assistance for the payment of wage arrears and tax holidays for taxes paid in connection with its payment. In addition, they ask for targeted, non-repayable assistance to pay off debts that have formed since the quarantine began in the country for services provided to aviation businesses by state enterprises and organizations.
Ukraine has launched the Accelerating Private Investment in Agriculture program according to the agreement signed last year, according to the website of the Ministry of Finance. “On May 20 this year, after Ukraine had conducted domestic procedures, the loan agreement entered into force,” the ministry said.
The loan amount is $200 million, the Finance Ministry noted.
The program should facilitate the creation of the State Agrarian Register and make it publicly available, conduct an inventory of state property lands and include these statements in the state land cadaster, develop a methodology for drawing up land use plans, conduct satellite mapping of the territory of Ukraine, and create an automated notification system for changes in the state land cadaster.
The agreement with the International Bank for Reconstruction and Development (IBRD) was concluded on August 27, 2019.
The IBRD is the main lending institution of the World Bank.
Ukraine has opened all border checkpoints at airports, Boryspil International Airport (Kyiv region) has accepted its first flight on the route Minsk (Belarus)-Kyiv.
According to Infrastructure Minister Vladyslav Krykliy, Lufthansa flights are planned this week on the route Frankfurt-Kyiv-Frankfurt, KLM on the route Amsterdam-Kyiv-Amsterdam, SWISS International Airlines on the Zurich-Kyiv-Zurich route, Belavia on the route Minsk-Kyiv-Minsk.
In addition, according to the minister, Wizz Air Hungary plans from June 16 to fly from Ukraine to Austria, Latvia, Germany, Poland, Hungary, Portugal, Denmark, Greece, Lithuania, Slovakia, Estonia and the United Kingdom, it has already received the relevant permits. And from June 21, the Irish company Ryanair plans to fly from Kyiv to Barcelona, Madrid and Krakow (permits for flights are expected).
Ukrainian companies will begin to carry out international flights from June 22, the minister said.
The International Monetary Fund (IMF) on June 11 published a letter of intent and a memorandum of economic and financial policy signed by the president, the prime minister, the Minister of Finance and the governor of the National Bank of Ukraine (NBU) as part of the request for a new 18-month Stand-By Arrangement for SDR3.6 billion ($5 billion), satisfied by the fund on June 9.
According to the published materials, after the issue of the first tranche of SDR1.5 billion ($2.1 billion), four program reviews are planned – based on the results of June, September and December of this year, as well as June 2021 with the completion of these revisions on September 1 and December 1 this year and May 15 and October 15 next year.
It is assumed that following two reviews this year, Ukraine will be able to receive another SDR500 million, and following two reviews next year a total of another SDR1.1 billion ($1.5 billion).
President of Ukraine International Airlines (UIA) Yevhen Dykhne does not see any reasons for airlines to raise airfare at the initial stage of lockdown ending.
During the press conference on Saturday, June 13, the video of which is available on the page of Boryspil International Airport, he said that all airlines today have excess resources, and at the same time very low demand is expected for their services, which will be compensated by all possible means.
“Therefore, it is absolutely logical that all instruments, including low prices, will be included in the fight against excess resources between companies for low demand and low passenger numbers. Due to this, insinuating that the additional costs of airlines and airports will somehow affect the airfare, in my opinion, is not justified. Today, the airfare is defined by the market’s supply-demand situation. Thus, I think that aviation will start operation from very low prices, affordable flights at a loss,” Dykhne said.
He also said that UIA communicates with all passengers who bought tickets for the airline’s flights, considering options for transferring flight dates, compensation using a voucher, or refund.
Official rates of banking metals from national bank as of June 15
One troy ounce=31.10 grams
