OREANDA-NEWS. October 06, 2014. Following numerous publications on UIA`s recent letter addressed to the Cabinet of Ministers of Ukraine, the carrier comments on the issue.

Ukraine International did approach the Government of Ukraine with a letter expressing deep concern with the performance of air transport industry of Ukraine, during the current crisis, and proposing a number of contingency measures that, according to the airline`s analysis, would increase sustainability of both the industry and Ukraine`s national carrier – Ukraine International Airlines.

Ukraine International has a great track record. The Airline achieved profits in twelve of the past fourteen years. It adds very significant value to Ukraine’s economy in terms of export earnings, high skilled employment, purchasing, support services and image.

UIA is the leading Ukrainian carrier. Its operations directly depend on the political and economic situation in the country. Historically, Ukraine has never been under such unprecedented pressure. Passenger transportation declined dramatically (e.g. in August 2014 traffic declined by over 27% compared to the same period last year).

Donetsk International airport and Luhansk International airport are closed. Ukrainian carriers are denied access to Crimea – a market that traditionally generated strong domestic and international passenger traffic. Moreover, the airspace over the Autonomous Republic of Crimea and Eastern Ukraine is restricted, while the Russian Federation banned Ukrainian carriers from operating transit flights over the Russian territory, forcing them to significantly lengthen eastbound flights` routes. Passenger traffic between Ukraine and the Russian Federation has reduced dramatically. Meanwhile, Ukrainian carriers are forced to offset the extra costs driven by the UAH unprecedented devaluation of 60%. Consumer demand for traveling abroad has reduced accordingly. Therefore, the airlines and airports of Ukraine as well as Ukrainian State Air Traffic Services Enterprise suffer dramatic losses.

Despite this crisis UIA maintains the integrity of its domestic and international route network, continues to generate transit passenger traffic via Ukraine and fully complies with its obligations to passengers and partners. The only reduction is that the carrier optimizes its fleet and schedules with some reduction in the number of flights within Ukraine and to the cities of the Russian Federation.

UIA management and shareholders introduce every contingency measure possible. However, sustainability of the Ukrainian aviation industry would be ensured by timely governmental support.

We see that most Governments worldwide, including the US and Europe, have provided financial support to sustain their airlines and air transport infrastructure. Ukraine should do the same.

Approaching the Cabinet of Ministers of Ukraine with a letter Ukraine International clearly outlined its vision and expressed readiness to cooperate with the Government of Ukraine, ministries and governmental agencies to sustain the air transport industry of Ukraine. The airline and the Government should join efforts to maintain the well-developed route network and to protect the basic national interests of Ukraine. If we fail to maintain the integrity of the existing route network, it will obviously take us long time to rebuild it. Moreover, the financial resources required will substantially exceed the investment needed to support it.

UIA deems it necessary to emphasize that any comparison and analogy to bankruptcies of former Ukrainian carriers are inappropriate and baseless. Today we don`t deal with the internal challenges of business in normal conditions, but must cope with systemic failures caused by military action and a profound political and economic crisis in the country. UIA regards any speculation and innuendo, related to UIA`s letter to the Government of Ukraine, to further exacerbate the national crisis and to reflect either blatant incompetence or deliberate sabotage on the part of individuals or editors disseminating distorted information.

The Airline is behaving in the most responsible manner in highlighting the problems and recommending proactive measures to reduce the damage to Ukraine’s infrastructure and economy.