Mystere IV A
January 28, 2003, 09:57 AM
Ukraine's two leading carriers - Aerosvit and Ukraine International Airlines (UIA) - are to meet to explore the possibility of merging to form a new national carrier in line with Government proposals.
Shareholders of both companies will meet in Kiev at the beginning of February, although it is clear that a full merger is some way off.
"Terms and conditions of the proposed merger are not on the agenda yet," says Aerosvit CEO Grigory Gurtovoy. "At this point, we are talking about making a decision in principle."
The original plan, laid out in 2001, envisaged that an integrated airline, along with Aerosvit and UIA, comprise the state-owned Air Ukraine as well. But the latter's dire financial situation made that proposal impracticable and the airline will probably be reinvented as a pure cargo carrier.
Gurtovoy does not rule out that it could come into play eventually: "But as it stands, integration process will be based on a two-plus-one formula" he says.
He dispels doubts about the viability of merging operations run by Aerosvit and UIA because, he says, "they have different niches and are not competitors".
Aerosvit operates services to around 30 destinations in 20 countries using a seven-strong all-Boeing fleet, including six 737s and one 767. It is planning to take another 767 this spring with a view to expanding intercontinental flights.
In contrast, UIA aims to focus on providing services to European destinations. Over the past five years it carried around one million passengers using a fleet of several leased 737s.
Fly High :windsock:
:pilot_2:
Shareholders of both companies will meet in Kiev at the beginning of February, although it is clear that a full merger is some way off.
"Terms and conditions of the proposed merger are not on the agenda yet," says Aerosvit CEO Grigory Gurtovoy. "At this point, we are talking about making a decision in principle."
The original plan, laid out in 2001, envisaged that an integrated airline, along with Aerosvit and UIA, comprise the state-owned Air Ukraine as well. But the latter's dire financial situation made that proposal impracticable and the airline will probably be reinvented as a pure cargo carrier.
Gurtovoy does not rule out that it could come into play eventually: "But as it stands, integration process will be based on a two-plus-one formula" he says.
He dispels doubts about the viability of merging operations run by Aerosvit and UIA because, he says, "they have different niches and are not competitors".
Aerosvit operates services to around 30 destinations in 20 countries using a seven-strong all-Boeing fleet, including six 737s and one 767. It is planning to take another 767 this spring with a view to expanding intercontinental flights.
In contrast, UIA aims to focus on providing services to European destinations. Over the past five years it carried around one million passengers using a fleet of several leased 737s.
Fly High :windsock:
:pilot_2: