More details of Air Ukraine restructuring emerge

Published: 11/19/1999

More details have emerged of the restructuring programme being put in place to help to Air Ukraine survive its present crisis (www.concise.org. 7th October 1999). According to the Ukrainian news agency, UNIAN, the airline and the Ministry of Transport have agreed a programme which, in addition to the sale, or write-off of 15 aircraft out of the 30-strong fleet, outlines steps to recover a number of government-owed and other debts, and grants Air Ukraine concessions on airport and navigation servicing charges. It has also been agreed that airworthiness certificates will be granted a five year extension. Air Ukraine will now operate new flights this winter on the route Kiev-Cairo-Hurgada-Kiev and operate a regular schedule on the routes Kiev-Ljubljana-Kiev and Kiev-Zagreb-Kiev. In addition, it has been agreed that flights to Pakistan, Morocco, Macedonia and Yugoslavia, on which the company had defaulted, will be restored. Redundancies and other cost efficiencies will contribute further economies, but whether such measures will be sufficient to bail out the airline remains to be seen

Article ID: 1106