UIA intends to reach self-sufficiency in 2015
Ukraine International Airlines (UIA, Kyiv) plans in 2015 to reach a level of self-sufficiency, Airline President Yuriy Miroshnykov has told reporters.
According to him, the company's losses due to exchange rate differences in 2014 will be higher than in 2013, but due to the growth of profitability the loss ratio as a whole will be lower.
Miroshnykov noted that the fall in oil prices, which have declined by 10-12%, as well as business process reengineering, outsourcing in various segments of the company's activities would help the company reach self-sufficiency. In particular, according to the UIA president, the transfer to office cleaning services allowed the company this year to save about UAH 1 million.
He also said that the ban on flights over the Russian Federation caused about $6-8 million of losses to the company, but the effect of this factor is not too sufficient because of keeping the company's transit traffic. Thus, according to Miroshnykov, the share of transit of the total volume of UIA's traffic in 2013 amounted to 38-40%, in the current year - 40-44%, and for 2015 it is estimated at 45-46%.
In addition, UIA's expectations regarding the transportation of transit passengers from the planned launch of Kyiv-Beijing flights are high.