Airports of Ukraine REQUIRE TERMINATION OF MINISTRY OF STRUCTURE №415 as discriminatory

Airports of Ukraine REQUIRE TERMINATION OF MINISTRY OF STRUCTURE №415 as discriminatory

Protecting fair economic competition is the cornerstone of public policy in democratic states. However, in Ukraine it is systematically broken.

Thus, the old leadership of the Ministry of Infrastructure of Ukraine, by its ORDER №415 of 04.06.2019 "On Establishment of Rates for Air Navigation Services in Ukraine's Airspace" approved more attractive terms of cooperation with airlines for one specific operator of the industry - International Airport " Boryspil ».

According to this document, the payment for air navigation services for Boryspil Airport is 643.5 Euros and for all other Ukrainian airports - 901.68 Euros. Although, in the first place, according to the same approved by the IIS Strategic Plan for the development of aviation transport for the period until 2020, the industry should have created equal and competitive conditions. And, secondly, with the previous ORDER # 669, the rate for all airports was set at 873.77 euros.

That is, for the period from 2015 to 2019, the position of the profile ministry has somehow shifted towards granting privileges to the Boryspil IA. Because setting different rates for the same air navigation service at the approach and in the aerodrome area, separately for Boryspil Airport and ALL other airports in the country, will push airlines based in Boryspil. In fact, MIU guarantees that the cost of air travel on domestic and international flights will be reduced by the airlines operating flights from Boryspil airport. At the same time, the cost of domestic and international flights operated from other airports of Ukraine is significantly increasing.

We asked the heads of airports of Ukraine to evaluate the situation:

Volodymyr Vasylchenko, Director General of Kharkiv International Airport: “... this initiative of the profile ministry, to put it mildly, is beyond explanation. After all, if some pay less than others, then what kind of healthy competition is involved? The amount of the fee will ultimately affect the cost of the ticket and, as a result, the passengers of Boryspil will pay less than the passengers of Kharkiv, Dnipro, Odessa. It turns out that everyone is equal, but someone is more equal ..? ».

Oleg Levchenko, General Director of Master-Avia LLC (Kyiv International Airport): “... it is obvious that the consequences of such unequal conditions will be felt most by the capital airport. After all, the Kiev airport is in close proximity to the privileged Boryspil airport, it is clear that the carrier will choose the price that is significantly lower ... ".

Yaroslav Mazurets, Director, Vinnytsia International Airport: "... this Order distorts competition between Ukrainian airports in terms of rates for air navigation services and their charging ...".

Petro Lipovenko, President of the Association of Airports of Ukraine (AAUCA): “... AAUCA strongly supports the reduction of the cost of domestic air transportation, including through the abolition of VAT and excise duty on fuel, but cannot agree with the anti-competitive conditions for the introduction of airports in Ukraine. Order No. 415 issued by the Ministry of Infrastructure of Ukraine on issues of protection of economic competition. The AMCU, as a state body, should thoroughly understand the problem and take immediate steps to restore balance and parity in the Ukrainian air transport market ... ”.

The airport industry in Ukraine today expects the new leadership of the Ministry of Infrastructure of Ukraine to abolish corruption order # 415, set a single rate for all airports and create a level playing field for business entities.

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