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Ukraine's largest air carrier, Ukraine International Airlines (UIA), has filed a lawsuit against the Ministry of Infrastructure in connection with the alleged attempt to provide exclusive conditions to Ryanair, Europe's No.1 low-cost air carrier, and thus discriminate against UIA.
"The memo and the attempts to provide exclusive conditions to a certain business are detrimental to the economic interests of UIA and create mechanisms for discrimination. UIA has filed claims because we see violations of legislation by the Ministry of Infrastructure of Ukraine when this agency signed an agreement with a foreign company in the form of a memorandum," UIA CEO Yuriy Miroshnikov told a press conference Thursday.
"In our opinion, the signing of this memorandum is an abuse of authority, and it is surprising when a minister signs a contract with a commercial entity. This is a very dangerous precedent. If this gets no legal assessment, it can lead to negative consequences for the air transportation industry and the economy [as a whole]," he said.
Read alsoUIA to boost fleet to 50 planes by 2018According to Miroshnikov, the signing of the memorandum poses a threat to the development of the air transportation industry through undermining the economic stability of airports.
He also noted that UIA welcomed the arrival of Ryanair on the Ukrainian market.
"We welcome the arrival of Ryanair, because it can provide impetus to the infrastructure development. Our claim is not aimed at banning the arrival of Ryanair on the Ukrainian market. The lawsuit aims to remove the violation of Ukrainian legislation, which we believe exists," Miroshnikov said.
Read alsoGroysman explains why Ryanair snubs at UkraineAs UNIAN reported earlier, Ryanair on March 15 announced the launch of its 11 flights from Kyiv and Lviv starting October 30, 2017. However, due to high demand for tickets, the schedule for certain flights, in particular, from Lviv to Berlin, was shifted to earlier dates in September 2017. Ryanair then clarified that the flights would be performed from Kyiv, namely from the Boryspil International Airport, while future flights from the Kyiv International Airport would be considered as well.
Later, Boryspil Airport CEO Pavlo Ryabikin claimed he had not yet signed a cooperation agreement with Ryanair, and opined that budget airlines should be hosted by the Antonov International Airport near Hostomel, Kyiv region, rather than by the Boryspil Airport.
Read alsoAntonov ready to host aircraft of low-cost carriers at Hostomel AirfieldJuly 10, Ryabikin said that in case of signing a contract with Ryanair, Boryspil would suffer UAH 2 billion, or US$77 million, annual losses. He called the contract financially unfavorable for the company and refused to sign it until the airport's requirements have been taken into account.
In turn, Ryanair said that it had canceled its entry into the Ukrainian market due to non-compliance by the Boryspil Airport’s management with the agreement previously reached with Ukraine's Infrastructure Ministry.
On July 11, Prime Minister Volodymyr Groysman, following a meeting with the officials of the Infrastructure Ministry, the Justice Ministry, the Boryspil Airport, the Airports of Ukraine Association, and the Investment Promotion Office, said that the talks with Ryanair were halted due to the Boryspil management being unready to take into account the company's significant preferential requirements, and that the negotiations would be resumed.
UNIAN memo. UIA was founded in 1992. Its destinations include the capitals and major cities in Europe, Asia, Africa, the CIS, and the United States.