OREANDA-NEWS. October 08, 2013. Ukraine International Airlines received a message from Mission of Ukraine to the European Union with regard to Swissport letter to European Commission President.

Once again Swissport attempts to decide the controversy of two business entities by exerting pressure on the judicial system of Ukraine, governmental and diplomatic authorities of Ukraine and the EU.

Per H. Utnegaard, Swissport International Ltd (Swissport) President and CEO, letter dated September 12, 2013 and addressed to Mr. Jose Manuel Barroso, European Commission President, once again contains deliberately misleading information aimed to misinform this reputable body and to exert pressure on Ukrainian governmental and judicial authorities via the EU. UIA perceives Swissport actions as continued and persistent attempts to lobby the interests of the private company by engaging the government, the press, the public, and the EU management to in order to obtain illegal judgment in the company`s favor. Swissport cassation appeal is currently pending in the Superior Economic Court of Ukraine. The next hearing is scheduled on October 2, 2013. The cassation appeal case is not sealed yet. Although the company does not have any legalistic reasons for the court, Swissport management states “there still is a possibility that, given enough pressure from the EU, the decision could be reversed” persistently and openly!

Simultaneously, Swissport letter addressed to European Commission President once again disseminates myths about “disposal of major investment”, “investor`s share dilution”, “putting the safe and reliable operation of flights between the EU and Ukraine in question”, etc. Despite the fact UIA has already made comprehensive comments on this defamation, the Airline is forced to once again lay emphasis on the following issues.

It was lack of investment that resulted in the handling services quality dramatic decline at Kiev Boryspil International airport early in the high season. Amounting approximately to 24000 UAH (3 thousand USD) Swissport shareholder fee rate did not allow the company to operate efficiently. Swissport Ukraine business strategy deficiency at the time when Swissport owned 70% of its interest led to grave consequences since Swissport Ukraine did not have enough technical and human resources to provide the rapidly increasing number of UIA passengers with quality handling services. To meet the existing challenge UIA invested 7993000 UAH (nearly 1 million USD) in INTERAVIA in July 2013 (as soon as the court`s ruling in UIA favor became effective). The latter allowed purchasing equipment needed for UIA passenger handling and aircraft maintenance. Currently durable equipment is being purchased – UIA even issued additional warrants for machinery acquisition. Early September 2013 INTERAVIA staff amounted to 1.150 persons outnumbering analogous figures of September 2012 by 60%. Thus, new workplaces with respectable wages were created.

Allegations against UIA of “diluting” Swissport interest in the companies` joint venture are also ungrounded. According to the court ruling adopted March 27, 2013, 100% of Swissport Ukraine share (hereinafter INTERAVIA) became UIA property. Thus, Swissport no longer holds interest in INTERAVIA.

UIA once again emphasizes that any disputable issues should be dealt with inside the legal environment only, without employing any administrative and political pressure methods.

Herewith, UIA hopes that Ukraine`s governmental bodies will rebuff attempts of exerting pressure on them since insinuations about selective justice, that Swissport International Ltd actively disseminates, undermine our country`s creditability, decrease its investment appeal, and are truly capable of harming Ukraine`s national interests.

Ukraine International Airlines are convinced that the values of civil society and government and business partnership manifested by European community will not allow engaging European Commission management into purely economic dispute of two private actors.