OREANDA-NEWS. April 19, 2013. The Court of Appeal upheld the ruling of Kiev Economic Court. Based on the ruling UIA acquired 70.6% stake of LLC Swissport Ukraine previously owned by Swisspost International (SPI).

The purchase price was determined based on the expert valuation as initiated by Swissprot International and further approved by the both UIA and Swissport International. The share was purchased by way of mandatory buyout mechanism as was established in the Participants’ Agreement between the parties.

February 21, 2006, Swissport International acquired the UIA share of Interavia ground handling provider – eventually renamed into Swissport Ukraine – at a fraction of the cost. UIA entered into the deal aiming to acquire a reliable, decent, and professional partner and to further share the profits. Concurrently with sale and purchase a three-year ground handling services contract containing disadvantageous conditions was imposed upon the airline. The contract entered into legal force January 1, 2007. The contract forced UIA to pay for Swissport Ukraine ground handling services at the tariffs significantly exceeding market prices. It should be noted that since Swissport Ukraine foundation UIA has not draw dividends.

After UIA became a privately-owned airline in April 2011 UIA and Swissport International conducted multiple negotiations with the involvement of UIA shareholders. Negotiations aimed at reaching the agreement regarding mutually advantageous partnership complying with market practice. However, the parties failed to come to a uniform understanding of Swissport Ukraine further development. As a result UIA offered its partner a civilized divorce. All UIA proposals were rejected and contrary to the Participants’ Agreement SPI initiated shareholders` meeting on March 6, 2012, at which SPI representatives voted for UIA share dilution.

June 2012 UIA applied to the court in order to protect its rights. Within the period of prolonged litigations SPI strongly delayed the proceedings, deviated from providing documents and information on the actual circumstances of the conflict, and thus tried to mislead the court. Notwithstanding, the court ruled in favor UIA. The Court of Appeal upheld the ruling.

Swissport International is currently disseminating untruthful information harming UIA and its shareholders` reputation.

April 18, 2013, Ukraine International Airlines initiates a press conference aiming at proving public and the press with objective and truthful information on UIA and Swissport International corporate dispute regarding Swissport Ukraine ground handling provider. The conference will be held in UNIAN news agency conference hall (4 Khreschatyk Street, Kiev) at 1 p. m. local time. The representatives of Swissport International, Embassy of Switzerland in Ukraine as well as representatives of leading Ukrainian and international media are invited to attend the conference.