Business news from Ukraine

Business news from Ukraine

Wizz Air plans to establish aviation hub in Montenegro

According to the Serbian Economist, Montenegro is negotiating with the Hungarian low-cost carrier Wizz Air to create an aviation hub in the country, which will allow the launch of up to 20 new international destinations from Podgorica and Tivat.

This was announced by the Minister of Transport and Maritime Affairs of Montenegro, Filip Radulovic, in an interview with Boka News.

According to the minister, the parties are “in the final stage of negotiations” and the final agreement could be signed in the coming weeks.

“The establishment of a Wizz Air hub in Montenegro will be a significant step to increase the country’s transport accessibility and strengthen its position on the European tourist map,” Radulovic said.

Wizz Air is expected to deploy up to three Airbus A320/A321 base aircraft in Podgorica, which will create hundreds of new jobs and increase passenger traffic by 30-40% in the first year of operation. Among the new destinations considered are flights to Italy, Germany, Poland, France, Sweden, Czech Republic, Hungary and the UK, as well as to several cities in the Balkan region.

The Ministry of Transport emphasizes that increasing the number of direct flights will boost tourism and business contacts, as well as expand opportunities for the Montenegrin diaspora and export of local products to EU countries.

“This is not just an aviation project – it is an element of a long-term strategy to turn Montenegro into a regional logistics hub between Central Europe and the Adriatic,” Radulovic said.

According to experts, the opening of Wizz Air hub can increase the number of air passengers in Montenegro from the current 2.3 million to 3 million people per year, as well as attract additional 200-300 thousand foreign tourists annually.

In addition, it will allow the country to strengthen ties with major European capitals and increase the sustainability of the tourist flow, which today is highly dependent on seasonality.

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NEW RULES OF AIR TRANSPORTATION OF PASSENGERS AND BAGGAGE COME INTO FORCE IN UKRAINE

The State Aviation Service of Ukraine has posted on its website the new rules of air transportation of passengers and baggage that have come into force.
The document, in particular, does not contain the norm on the mandatory free baggage allowance of a certain weight (previously 15 kg).
According to the new edition of the rules, information on the maximum amount and weight of baggage, accepted by the air carrier for transportation without payment, is specified in the rules of the air carrier and the contract of carriage provided to the passenger.
The State Aviation Service also legalized the new rules for charging fee for registration at the airport.
“Check-in at the airport is free of charge if it is provided for by the rules for applying the fare according to which the ticket was purchased and also if registration cannot be done via the airline’s website or using the self-service kiosk. Otherwise, the air carrier may charge an additional fee for check-in at the airport,” according to the rules.
The deadlines for check-in and boarding have also changed: now airlines can close check-in counters no earlier than 45 minutes before departure, and boarding gates no earlier than 15 minutes before departure (earlier 40 and 10 minutes respectively).

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UKRAINE INTERESTED IN LIBERALIZING U.S.-UKRAINE AIR TRANSPORTATION

Ukraine’s Infrastructure Ministry is interested in liberalizing air transportation between Ukraine and the United States.
This was announced by Ukrainian Infrastructure Minister Volodymyr Omelyan at a meeting with the U.S. Under Secretary of Transportation for Policy Derek Kan, the U.S. Transportation Department’s International Aviation Director Brian Hedberg and Deputy Executive Director for the Office of International Affairs in the U.S. Federal Aviation Administration (FAA) David Burkholder as part of a working visit to the United States.
“We are ready to develop passenger air transportation with the countries and are interested in facilitating the implementation of the agreement between Ukraine and the United States on air communication. We will sincerely welcome the expansion of the presence of American airlines in Ukraine,” the Infrastructure Ministry’s press service quoted Omelyan as saying.
According to the press release, Omelyan said Ukraine is interested in attracting U.S. experience in the development of digital infrastructure. He discussed with his American counterparts the policy of Ukraine in the field of anti-corruption.
As reported, the Infrastructure Ministry has predicted the signing of an agreement on the Common Aviation Area (CAA) with the EU during spring 2019.
The accession of Ukraine to the common aviation space with the EU is an important step for the development of the country’s aviation industry. Liberalization of airspace, first of all, will attract new airlines to Ukraine, and then increase competition in the market, which will make air transportation much more affordable.
In accordance with the Ukraine-EU Association Agreement, civil aviation is regulated by a separate agreement – Stabilisation and Association Process (SAP), which was initiated in 2013, but not yet signed. The signing of the agreement on SAP was postponed twice on the initiative of the EU side. The main reason for the delay is the lack of consensus between Spain and the UK on the wording on the territorial application of the agreement in part of Gibraltar.
In addition, Ukraine should bring the country’s aviation regulations in line with EU airspace legislation.

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