Yevhen Dykhne: it is Encouraging that the new government sees the flaws and expresses a willingness to correct them

Photo: cfts.org.ua

To exit from the financial turbulence and breakthrough in the global aviation market, Ukraine needs to carry out key reforms, otherwise the Ukrainian carriers “crush” competitors of the closest neighboring countries, writes in his column for the website of “Centre of transport strategies”, the President of the UIA Eugene Dykhne.

Adverse government policy has already led to financial losses of the sector, he said. According to the President of MAU, in 2011 the company is developing jointly with Boryspil airport aviation hub and annually increases on the average 20% of passengers per year, but this is contrary to the policy of the state, which “hardly could be called a favorable one.”

“To Boryspil international airport it was expressed in the introduction of dividend of 90%, which were actually withdrawn from the company any financial resources for development. For UIA historical problems of state regulation of the aviation industry (well above the average European rates the costs of air navigation services, the excise tax on fuel and the need for overflight of territories of the Russian Federation) provoked the opposite financial effect,” says Eliashberg.

He noted that over the past five years, MAU has overpaid $216 million, and “this is a critical impact on the economic result of the airline”. The situation is complicated by the need of overflight of non-government-controlled territories of Donbas and Crimea, and the territory of the Russian Federation: because of the increase of the route of MAU incurs additional costs for aviation fuel, explained the head of the airline.

“Simply put, the national carrier was much worse than its closest competitors from Turkey, Poland, Latvia, and even Belarus, – he wrote. – This makes the UIA as a non-competitive travel time and cost of flights. In addition, it violates the hubs business model of the airline, because the transportation of passengers from the East for a transplant in “Borispol” is not profitable. The lack of economic expansion, in the end, did MAU hostage to this problem.”

Top Manager said that further growth kubovogo potential of Ukraine depends solely on the continued development of the hub at the airport “Borispol”. Eliashberg noted that neighbouring countries are investing tens of millions of dollars in infrastructure to their hub, build megathermal and the runway in order to carry 200 million passengers a year.

The President of the UIA said that today the domestic air carrier and the airport is not under the force of its own, only by reducing the financial costs to withstand external players.

“A lot depends on the border, customs, tax rules and immigration legislation, etc. In these areas requires liberalization, a revision of the strict rules that hold back not only the interest of foreigners in Ukraine and development of Ukrainian airlines. It is encouraging that the new government sees the flaws and expresses a willingness to correct them”, – summed up the head.

Yevhen Dykhne headed the “Ukraine International airlines” September 18, 2019. In this post he succeeded Yuri Miroshnikov, who led the company for 15 years, reported in a press-service MAU.

Eliashberg has experience of managing at the enterprises of “Lviv airlines” and “Ukrzaliznytsya”, prior to joining the UIA in 2014, acting Director General of GP “international airport “Boryspil”, in 2017, he was appointed first Deputy General Director of the company.