AeroSvit expands while Ukrainian Government hints at full privatisation

Ukraine's leading carrier, AeroSvit Airlines, is steadily expanding while the Ukrainian Government has been hinting at impending privatisation of its remaining stake in the carrier. The next six months will see the airline significantly increase capacity over summer while continuing to operate significantly more capacity in winter 2012/13 compared to the previous year.

AeroSvit is the largest carrier in Ukraine by capacity with about 30% of total system capacity. Ukraine International Airlines (UIA) is currently the country's second largest carrier, accounting for about 17% of the overall system capacity.

The Ukrainian Government sold its 61.6% stake in UIA to three existing minority shareholders in Feb-2011 including UIA Beteiligungsgesellschaft mbH, which became the majority shareholder with a 59% stake in the carrier. In May-2012 it was reported that Ukraine's Government plans to sell its 22.39% stake in AeroSvit Airlines in 2012 or 2013. The Government's stake is currently worth approximately USD542,000.