Odessa Airlines cries foul over split of airline and airport

Published: 10/26/1999

A deputation from the Ukrainian parliament has concluded that the separation of Odessa Central Airport from Odessa Airlines, which took place three months ago, needs to be re-examined. This follows claims that the split was inequitable, with the airport retaining all office and technical space, parking lots, aviation fuel reservoirs and other properties. According to Yury Skoropis, General Director of Odessa Airlines, the separation of the two entities also violated a number of laws determining the order and objectives of the restructuring. Skoropis claims that, following the split, the airline inherited a budget deficit of 3.5m grivnas a year and is faced with a payment of 1m grivnas in order to keep the business going. Having lost its fuel storage capacity, it no longer has the ability to buy fuel directly from refiners and store it,thereby stabilizing the 70% of its air operating costs attributable to fuel. Without intervention, the airline's prospects are poor. Of its aging fleet fleet of eight Tu-154s, only three fly. Only three out of the airline's five Yak 40s are airworthy, along with two of the 29 helicopters. The overhaul of the fleet will require significant funding. The airline is also considered to be overstaffed.

Article ID: 1015