UKRAINE International Airlines (UIA) is in advanced talks with the European Bank for Reconstruction and Development (EBRD) and three foreign airlines over the possible sale of up to one-quarter of the carrier.
Deputy president Dick Creagh says that the airline, 11.3%-owned by lessor GPA, with the rest held by the Ukrainian Government, is seeking investors to take 24% of an expanded equity base.
Creagh declines to name the carriers talking to UIA, but "...wants to see cash flowing this year". Another source familiar with the Ukrainian situation, however, suggests that Austrian Airlines, which has a good relationship with UIA, and Swissair, which already serves Kiev, are the most likely candidates. Tentative talks with Lufthansa are known to have led nowhere.
UIA has now swapped its two leased Boeing 737-400s for -200s but, says Creagh, will take an additional -300 this month. It may even buy one aircraft.
The airline is discussing co-operation with Crimean carrier Crimavia, despite tension between Crimean authorities and the Central Government.
It may, however, have to cede its long-haul aspirations to 100% state-owned Air Ukraine. The flag carrier has undergone a management shake-up, and a delegation visited Boeing and General Electric early in February to discuss leasing a Boeing 767.
A new US/Ukraine bilateral agreement has opened up additional US cities to Ukrainian carriers.
Source: Flight International
