Business news from Ukraine

UKRAINIAN AIRLINES AND AIRPORTS ASK AUTHORITIES FOR STATE SUPPORT

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.

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UKRAINE OPENS ALL BORDER CHECKPOINTS AT AIRPORTS

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.

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EUROPEAN AVIATION SAFETY AGENCY INCLUDES ALL AIRPORTS IN KYIV AND CHERNIVTSI REGIONS IN COVID-19 RISK LIST

The European Aviation Safety Agency (EASA) has included all airports in the Kyiv and Chernivtsi regions in the list of airports located in the affected areas with a high risk of transmission of COVID-19 infection.
According to a message published on the EASA website on May 12, the list of risky airports was developed in coordination with EASA member states and is based on information from the World Health Organization, the European Center for Disease Prevention and Control and other reputable public health institutes.
The updated list takes effect on May 14. In total, airports from 32 countries of the world, including in the United States, Russia and Great Britain, were included in the risk list.

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UKRAINE’S AIRPORTS REDUCE PASSENGER TRAFFIC BY 9%, AIRLINES BY 17%

Ukrainian airports in January-March 2020, according to recent data, served 4.025 million passengers, which is 8.9% less than in the same period in 2019.
According to the website of the State Aviation Administration of Ukraine, in international traffic, the passenger flow of Ukrainian airports decreased in the indicated period by 7.4%, to 3.631 million people.
According to the service, in January-March 2020 Ukrainian airlines served almost 1.954 million people, which is 17.3% less than the figure for the same period of 2019. Of these, 1.757 million people were transported in international traffic (a decrease of 17.1% compared to January-March 2019).
At the same time, for the three months of 2020 Ukrainian airlines operated 16,900 commercial flights (a decrease of 16.3%), including 14,200 international flights (a decrease of 14.5%).
As reported, in 2019 Ukrainian airports served 24.337 million passengers, which is 18.5% more than in 2018.

INVESTMENT COUNCIL OF UKRAINE PREDICTS DECLINE IN INVESTOR INTEREST IN REGIONAL AIRPORTS

The head of the office of the National Investment Council of Ukraine, Olha Mahaletska, predicts a decrease in the interest of potential investors in regional airports, according to the website of the council. “Previously, one of the most attractive areas for investment was infrastructure, namely, concession of airports, but after the pandemic the world will change, the focus of interest will change. I do not think that now regional airports will be considered by potential investors as one of the most interesting topics,” she notes.
According to Mahaletska, the council is already conducting the sector analysis to understand which areas may be attractive to investors in the post-pandemic period.
At the same time, the council said, with reference to professor at Georgetown University Anders Aslund, that after the COVID-19 pandemic, the Ukrainian economy will be in a slightly better position than the economy of the European Union: while the EU will lose about 10% of GDP in 2020, Ukraine will lose about 8%.
The head of the office said that the timely introduction by the Ukrainian government of a quarantine was a very correct decision, which helped contain the spread of the disease in the country.

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AIRPORTS OF UKRAINE INCREASE PASSENGER TRAFFIC BY 15% IN 2020

The airports of Ukraine in January-February 2020, according to recent data, served 3.237 million passengers, which is 15% more than in the same period in 2019.
According to the website of the State Aviation Administration of Ukraine, passenger flow of Ukrainian airports on international routes during the indicated period rose by 16.6%, to 1.913 million people.
According to statistics from the agency, in January-February 2020 Ukrainian airlines served 1.547 million people, which is 3.1% more than in the same period in 2019. Of these, 1.385 million passengers were transported in international traffic (an increase of 3% compared to January-February 2019).
At the same time, for the two months of 2020, Ukrainian airlines operated 12,700 commercial flights (a decrease of 2.9%), including 10,500 international flights (a decrease of 2.6%).
As reported, in 2019 Ukrainian airports served 24.337 million passengers, which is 18.5% more than in 2018.

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