State Aviation Service of Ukraine opens Ukrainian market to international airlines

State Aviation Service of Ukraine opens Ukrainian market to international airlines

By its Regulation No. 222 dated 4 April 2016 (the “Regulation”), which is expected to become effective by the end of May 2016, the State Aviation Service of Ukraine (the “SASU”) will abolish a number of controversial legislative provisions that have restricted the Ukrainian air services market for international airlines.

Pursuant to the Regulation, in order to be eligible for the allocation of either a regularly scheduled or charter international air route, an airline will no longer be required to:

  • be directly or indirectly controlled by the State of Ukraine or a national of Ukraine;
  • carry out local flights for at least 12 months preceding the allocation of a regularly scheduled international route; and
  • comply with the applicable maximum flight frequency for regularly scheduled international flights from/to Ukraine.

The above restrictions were introduced by the SASU in 2014, in effect blocking the allocation of new international air routes to international airlines. This, in turn, has led to monopolisation of the market by a single Ukrainian group as well as a number of international airlines reducing their activity in the country.

If you would like to receive further information in connection with the above, please contact Olexiy Soshenko.