Business news from Ukraine

UKRAINIAN STATE-OWNED AIRLINE SHOULD PROVIDE ALL VARIETY OF FLIGHTS

The Ukrainian state-owned airline, which is scheduled to be created in 2022, will provide both internal and international flights, including long-haul flights.
“The state-owned airline must provide regional communication for connecting flights with Kyiv, which is why we have started to develop airports in the regions. These are also flights to Europe, transatlantic flights and long-haul flights to China, Asia,” Deputy Head of the President’s Office Kyrylo Tymoshenko told Interfax-Ukraine in an exclusive interview.
He also said that negotiations on the creation of internal airline are already underway both with foreign leaders of the aviation industry and with Ukrainian specialists.
“We want to launch An-148 to regional and neighboring countries. Long-haul traffic is operated by leasing Boeing or Airbus. There are already real miscalculations, including its [state-owned airline] profitability. Our plans do not include annual subsidies for this campaign, it should generate income,” the deputy head of the President’s Office said.
He also said if Ukrainian citizens are in another country, as in the situation with COVID-19, and cannot leave it, this airline will take them home.
“In addition, the termination of air transit through Belarus can potentially increase our revenues. This, by the way, also applies to land transit. Our tax and transport committees of the [Verkhovna] Rada have ideas on introducing taxes on transit transport, which would give us an opportunity to earn money,” Tymoshenko said.

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UKRAINE WANTS TO ABOLISH VAT ON INTERNAL FLIGHTS

The Ministry of Infrastructure of Ukraine will insist on the adoption by the Verkhovna Rada of the law on the abolition of value added tax (VAT) on internal flights, Infrastructure Minister Vladyslav Krykliy has said.
“Aviation is gradually returning to the sky. Internal regular passenger flights started on June 5, and international flights will resume on June 15. There are still challenges for the industry. Therefore, we will insist on the fact, that the Verkhovna Rada support the abolition of value added tax for internal flights,” he wrote on his Telegram channel on Thursday, June 11.
Earlier, SkyUp Airlines (Kyiv) announced the urgent need to abolish VAT on domestic flights in order to maintain affordable prices for tickets within geographic expansion.

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