Forbes Mutch/KIEV
UKRAINE International Airlines (UIA) believes that it is on course to post its first profit since starting trading at the end of 1992. The carrier also says that it is looking for investment from an airline partner.
UIA deputy president Dick Creagh estimates that the carrier will end its third year of operations with an operating profit of around $3 million, marking a continued turnaround from the airline's initial heavy losses.
The improvement is largely because of a growth in high-yielding business traffic on routes between the Ukrainian capital Kiev and western Europe. This rise has helped offset an overall decline in passenger numbers caused by falling tourist traffic to Ukraine, says Creagh. He admits that the total number of passengers is now unlikely to reach the 160,000 level forecast for 1995.
The carrier now operates services to 13 capitals throughout Western Europe, with options on a further 18 routes, including direct transatlantic services, although there are no immediate plans to exercise these rights.
The fleet of two Boeing 737-200s has grown with the addition of a leased 737-300 in April, and the lease of a further 737-400 has been budgeted for in 1996.
A rise in cargo traffic, which is due to reach 1,000t this year, has also led to the wet lease of an Antonov An-12 direct from the Ukrainian manufacturer.
UIA is now in the final stages of negotiating a private investment package with the European Bank for Reconstruction and Development and possibly from outside airline partners.
The Ukrainian Government still holds 89% of the company, with Irish leasing company GPA accounting for the remainder, but Swissair is understood to be among airlines expressing an interest in taking over part of the share. UIA also has code-sharing links with Austrian Airlines and Iberia.
Source: Flight International
