Business news from Ukraine

ABOLITION PAYMENT OF VAT ON DOMESTIC AIR TRAFFIC WILL HELP UKRAINIAN AIRLINES DEVELOP

Abolishing the payment of value added tax (VAT) for domestic air transportation will create positive conditions for the development of domestic airlines and revitalize regional air traffic, Deputy Head of the President’s Office Kyrylo Tymoshenko has said.
“We have goals to abolish VAT on domestic air transportation. This is an important topic. After all, it will help the development of Ukrainian airlines – not only state ones, but also private ones,” he said during the “Ukraine 30. Infrastructure” forum.
According to the official, this year the creation of a state air carrier can be completed and Ukraine will receive an understandable state national air carrier that will be able to solve not only tourism issues, but also state issues.
At the same time, Tymoshenko recalled that in the spring of 2020, at the beginning of the COVID-19 pandemic, it was necessary to involve private airlines in the evacuation of Ukrainian citizens from other countries.
“All this will be decided by a large national air carrier, which, I hope, will become known to the whole world,” he said.

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AIR TRAFFIC IN UKRAINIAN AIRSPACE IN NOV FELL BY 56%

Traffic in the airspace of Ukraine in November fell by 56.7% compared to November last year, the press service of the Ukrainian State Air Traffic Services Enterprise (UkSATSE) has reported.
In general, UkSATSE serviced 9,910 flights last month, of which 1,909 were domestic (a decrease of 15.6% from November 2019), 4,563 international (less by 62%) and 3,438 transit (down by 60%).
Ukrainian airlines performed 3,578 flights (53.4% less than in November a year earlier), foreign airlines 6,332 flights (58.3% less).
“The next year in the aviation segment is seen through the prism of a certified vaccine, new rules for transportation for passengers and a new economic reality for airlines. The rebirth of the industry will depend on macroeconomic factors, adjusted for aviation narrow-profile features. In positive circumstances, the recovery of the aviation market could occur much earlier than predicted. This is especially true for Ukraine,” Head of UkSATSE Andriy Yarmak said.
According to the agency, the dynamics of the number of flights in the airspace of Ukraine in 2020 remains low: June – 4,584 flights, July – 12,195, August – 16,690, September – 14,959, October – 13,041 flights.
However, UkSATSE notes that the situation with traffic in the sky may begin to change in the near future.

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UKRAINE APPROVES DRAFT AGREEMENT WITH SINGAPORE AND ICELAND ON AIR TRAFFIC

The Cabinet of Ministers of Ukraine has approved a draft intergovernmental agreement with the Republic of Singapore and Iceland on air traffic.
According to the relevant government decrees, the Cabinet of Ministers authorized Chairman of the State Aviation Administration of Ukraine Oleksandr Bilchuk to sign the relevant agreement.
According to the explanatory documents, this decree is provided by the need to conclude intergovernmental agreements on air services with these countries, which makes it possible to create a contractual legal framework necessary for the implementation of regular air traffic between these countries and Ukraine. This will intensify bilateral cultural ties, as well as economic relations between the countries, the government authorities said in the documents.
The agreement will determine the procedure for regulating international flights, the procedure for appointing airlines on the routes, provides for the mutual recognition of crew member certificates and others.

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AIR TRAFFIC BETWEEN UKRAINE AND AUSTRIA MAY RESUME AFTER JUNE 23

Air traffic between Ukraine and Austria may resume after June 23, provided that both countries open airspace and remove restrictions on the entry of citizens, Ukrainian Ambassador to Austria Olexander Scherba has said.
“Regarding the situation with the restoration of air traffic between Ukraine and Austria. There is a possibility that flights will resume after June 23 provided that both countries “open” for each other in terms of opening airspace and in terms of lifting restrictions on entry of citizens. There is such a desire. It is very important that Ukraine pass the conditional peak of the pandemic,” the ambassador wrote on Facebook

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UKRAINE INTERNATIONAL AIRLINES WILL DISMISS 900 EMPLOYEES DUE TO CLOSURE OF AIR TRAFFIC

Ukraine International Airlines (UIA, Kyiv) has begun a process of the forced dismissal of 900 employees (35.2% of the company’s staff as of early 2020) due to the closure of air traffic because of anti-epidemic quarantine measures introduced by Ukraine, the company’s press service has said.
“Now the company’s management is taking all possible measures to reduce costs and generate income from single flights. Our goal is to preserve the company and key personnel, in particular flight crews. Unfortunately, a significant decrease in the airline’s activities resulted in a forced reduction of 900 UIA highly professional employees,” UIA President Yevhen Dykhne said.
The airline’s press service told Interfax-Ukraine that UIA has already begun the process of staff reduction in accordance with the law, which will require a minimum of two months.
Dykhne emphasized that in connection with the introduction of restrictive measures on regular passenger air transportation since March 17 of this year, UIA’s work was practically stopped.
The company also noted that the UIA long-haul fleet will also be reduced.

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UKRAINE AND QATAR SIGN AGREEMENT ON AIR TRAFFIC

The Cabinet of Ministers of Ukraine and the government of Qatar have signed a protocol amending and supplementing the agreement on air traffic.
According to the website of the Infrastructure Ministry of Ukraine, the corresponding document was signed during the meeting of Infrastructure Minister Vladyslav Krykliy with President of the Civil Aviation Authority of Qatar Abdullah bin Nasser Turki Al Subaey.
“We are liberalizing air traffic between Ukraine and the state of Qatar. The signing of today’s protocol will allow expanding the access of airlines of both countries to the air transportation market, eliminating restrictions on the number of flights, types of aircraft, and also destinations in the territories of both countries,” the minister said.
In addition, the minister of infrastructure noted that the signing of the protocol would ensure the creation and operation of a reliable legal mechanism of an international level for the implementation and intensification of the process of bilateral interstate relations between the states, and will also contribute to the development of cooperation in the field of air transport, tourism and the further expansion of the geography of the airlines’ flights.
The Qatari official, in turn, noted that the signing of this document opens up new opportunities and testifies to the cooperation of Ukraine and Qatar at the highest level.

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