The Ukrainian government is trying to reassert control over the latest international blow to Ukraine’s reputation after the Irish low-cost airline, Ryanair, said it would not enter the nation’s travel market after it could not reach an agreement with Kyiv Boryspil International Airport.
Pavlo Rjabikin, the Boryspil Airport director, wrote on Facebook on July 11, that during a meeting with Ukraine’s Prime Minister Volodymyr Groysman, the decision was made to renew negotiations with the carrier and have the National Anti-Corruption Bureau of Ukraine and the Anti-Monopoly Committee of Ukraine investigate why talks fell apart.
“I am ready for an international, governmental, business or any kind of a common sense audit. I am confident that (the authorities) would hear my arguments and we would come to a common strategy and a compromise on the airport’s development,” Rjabikin wrote.
Ryanair spokesperson Ronan O’Keeffe told the Kyiv Post on July 11 that the carrier canceled all planned Ukraine routes due to the Kyiv airport’s failure to honor an agreement for new Ryanair routes, which was agreed in March, revealing no details of the agreement.
However, Rjiabikin said during the press conference in Kyiv on July 10 the carrier’s demands were unacceptable for the Boryspil Airport. According to Rjabikin, Ryanair demanded: 35 percent of duty-free income, a $7.5 per passenger tariff (as opposed to the normal $13), tax-free aero-navigation, tax-free registration counters, tax-free parking space, the allocation of a land plot for a hotel construction on the airport’s territory and much more — in general, 14 conditions.
“We will only reconsider flights to or from Ukraine when our agreements would be honored. However, (Ryanair) capacity will be allocated to other countries,” O’Keeffe said.
In March, the Irish low-cost carrier operating in 34 nations announced its entry to the Ukrainian market in October, announcing four new routes from Kyiv and seven from Lviv international airports.
It quickly signed the contract with Lviv International Airport and started selling tickets, but the negotiations with Kyiv – the airport with the highest handling capacity in Ukraine, were tough. Two months before the first Ryanair flight would take off from Ukrainian land, Ryanair canceled its plans and blamed Boryspil Airport for failing to honor the commitments. It also canceled Lviv flights.
Ryanair explained its decision by blaming Ukraine’s state-owned Kyiv Boryspil International Airport in protecting the interests of the high-fare airlines, specifically Ukraine International Airlines, a company belongs to Ukrainian billionaire oligarch Ihor Kolomoisky.
“On behalf of Ukrainian visitors and consumers, we regret that Kiev Airport has demonstrated that Ukraine is not yet a sufficiently mature or reliable business location to invest valuable Ryanair aircraft capacity,” Ryanair’s chief commercial officer David O’Brien said in a statement sent to the press on July 10.
Ukrainian consumers and visitors have lost access to Europe’s lowest air fares and widest route network. As a result, Ryanair has no choice but to cancel four new Kyiv routes and 7 new Lviv routes, which will result in the loss of over 500,000 passengers and 400 jobs, reads the Ryanair press release.
Ukrainian Infrastructure Minister Volodymyr Omelyan reacted by calling for the firing of Rjabikin and accusing him of protecting Kolomoisky’s interests.
“I can honestly say that when it comes to this situation, I did all I could. I stopped short of taking Ryabikin’s hand and forcing him on a plane to Belfast so that he can negotiate with Ryanair. Show me, one other minister that continues fighting despite the risks involved,” Omelyan wrote on Facebook on July 11.
The reaction among the traveling public will likely be harsh. Ukrainians finally secured visa-free travel to most European nations on June 11 and the entry of low-cost airlines were welcomed as a move to make international trips more affordable. Ukraine’s attempts to attract more foreign investment will likely be undermined by the highly publicized cancellation.
However, Ukraine International Airline fired back, denying that the near-monopoly air carrier in Ukraine was to blame for the fiasco.
The airline, according to a press release, offers passengers “the widest selection of ticket fairs starting from” $10 and $23 for domestic and international services, respectively.
The airline also denied being part of the negotiations and “is taken aback with the emotional and unreasonable rhetoric by” Omelyan and accused the minister of improperly attempting “to create preferences” financially for Ryanair.
