Kiev Boryspil International Airport

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.

Middle Eastern LCCs driving growth into Eastern Europe, Russia and CIS

Russia, the CIS nations and Central and Eastern Europe have been receiving a great deal of attention from Middle East-based carriers in recent months. Full service and low-cost carriers have announced or added a flurry of routes into Eastern European destinations over the past few weeks. Airlines in the Middle East are looking to tap into the underserved region, which is still showing strong economic growth despite troubles in several European markets and strong growth in business and tourism traffic.

Homegrown LCCs Air Arabia and flydubai are leading a push into the regions, but so too is Qatar Airways. Additionally, Oman Air plans to launch services to Moscow. While Middle Eastern carriers have long dominated traffic into western Europe, they now comprise the majority of traffic between the Middle East and central Europe, eastern Europe, Russia and CIS.