12:11 19.04.2013

Swissport disconnects Swissport Ukraine from passenger servicing system

3 min read

Swissport International (SPI, Switzerland) after the purchase of Swissport Ukraine by Ukraine International Airlines (UIA, Kyiv) has disconnected Swissport Ukraine from the passenger servicing system and all IT systems, despite there being existing agreements, Chairman of the UIA's supervisory board, Aron Maiberg, said at a press conference in Kyiv on Thursday.

"When the court of appeals issued a ruling in favor of UIA, SPI told reporters that it will not challenge the decision, although it disconnected Swissport Ukraine from the passenger servicing system," he said.

He said that UIA assesses such actions of SPI as inconsistent and aggressive, and it has taken some measures to protect the company.

"Their actions are inconsistent and yesterday we learned from media reports that they have filed a counter-claim against the court ruling," he said.

Maiberg said that SPI is trying to give a certain political complexion to the conflict using its famous name, including by claiming an illegal seizure by UIA.

"We've sent a letter to Swissport International with a claim to deny the information. If it is not denied, we'll protect our interests," he said.

As reported, referring to the Load Star publication, SPI lost a 70.4% stake in its subsidiary Swissport Ukraine, and UIA bought the stake under a court ruling.

Swissport said that on March 27, 2013 the Ukrainian court ruled that UIA is to buy a 70.4% stake in Swissport Ukraine for just $400,000, while the real value of the company is $25-30 million.

In December 2012, the Antimonopoly Committee of Ukraine permitted UIA to buy the stake in the share capital of Swissport Ukraine.

The Court of Appeals on March 27, 2013 upheld a decision under which Ukraine International Airlines acquired a 100% stake in the Swissport Ukraine handling agent.

The purchase was approved by the court on the basis of assessments approved by SPI and under the terms previously agreed by the parties. The mechanism of compulsory acquisition UIA used was agreed by the parties, and each party under certain conditions may apply it.

UIA said that SPI joined the business in 2006 by acquiring the UIA share in its ground handling provider. At that time UIA was controlled by the state.

As a result of this deal, UIA was deprived of virtually all rights to take part in the company's management despite owning a stake of nearly 30%. Moreover, the airline received a 3-year service contract with SPI with no right of early termination. After the company's privatization UIA tried to agree upon civilized principles of joint venture management, though negotiations hit a dead end.

On March 6, 2012 SPI called a shareholders' meeting at which it voted for UIA share dilution and approved valuation of SPI and UIA stake for their redemption.

UIA was founded in 1992. The company has been fully privatized. Its fleet consists of 22 medium-range Boeing-737 aircraft. Its home airport is Kyiv's Boryspil International Airport.

AD
AD
AD
AD