Ukraine International

Ukraine International to double international network as Aerosvit restructures

Ukraine’s largest carrier Aerosvit has entered a period of restructuring after filing for bankruptcy on 28-Dec-2012. At the core of the airline’s reorganisation is a large network shake-up which will see rival Ukrainian carrier Ukraine International Airlines (UIA) take over nearly its entire international network.

While UIA stands to benefit significantly, adding at least 30 routes, Aerosvit’s operations will significantly reduce in size. If it survives the bankruptcy, Aerosvit will be left as primarily, or perhaps entirely, a domestic operator.

Aerosvit hopes to continue operating during its reorganisation, which is aimed at restoring the airline’s operational efficiency and improving profitability, and retain five medium-haul and five-long haul international routes. But the airline’s ongoing operations have been disrupted with incidents involving its aircraft being impounded at various airports causing issues across its network.

Ukraine International plans to expand into long-haul operations in 2013 with Bangkok and Beijing

Ukraine International Airlines (UIA) is planning to expand into the long-haul market in 2013 with widebody aircraft being added for flights to North and Southeast Asia. The eastbound expansion marks a significant milestone for UIA as it will help balance out a western-focused network and help the carrier continue to build its transit hub at the Ukrainian capital Kiev. Asian expansion will also result in more intense competition with Ukraine’s other major carrier, AeroSvit, which already operates widebodies and is planning later this year to double the size of its for now small network in North, South and Southeast Asia.

UIA CEO Yuri Miroshnikov told CAPA on the sidelines of last week’s IATA AGM in Beijing that the privately-owned carrier aims to launch services to Bangkok and Beijing in 2013. UIA is now seeking to lease at least two widebody aircraft to support the new flights, most likely Boeing 777s although A330s are also being considered. 767s, which AeroSvit currently operates to Bangkok and Beijing along with other medium/long-haul destinations, is not under consideration according to Mr Miroshnikov due to their relatively higher seat costs.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.

Ukrainian air traffic movements increase 15% in 2010

Ukrainian State Air Traffic Service Enterprise (UkSATSE), the air navigation services provider of the Ukraine, reported 2010 aircraft traffic rose 15.2% year-on-year, to a record 457,445 movements. UkSATSE’s area of responsibility covers five Flight Information Regions with the total area of 776,442sqkm. UkSATSE manages airspace over its own territory as well airspace over the Black Sea, a high-volume traffic area with major strategic air corridors handling traffic between Europe and the Middle East and Asia Pacific regions.