12:01 22.10.2015

Sanctions against Ukrainian airlines will not reduce sales - Amadeus

2 min read
Sanctions against Ukrainian airlines will not reduce sales - Amadeus

The termination of air communications between Ukraine and Russia in the long-term outlook will not change the volumes of sales of Ukrainian conventional and online agencies, and ticket sales of Ukrainian airlines could grow, Director General of Amadeus Ukraine and Moldova Oleksiy Murovtsev has said.

He said in interview with Interfax-Ukraine that four Russian airlines currently fly to Ukraine – Aeroflot, Transaero, UTair and S7.

"Today, the share of Aeroflot's flights in booking for the total volume of tourist agencies is 10-20%, that for Transaero and UTair – up to 5% and S7 – 1%. The major part of Aeroflot's passengers who flew from Ukraine – are transit passengers and their destinations were not Russian cities, but the Americas, Asia etc. The situation with Transaero is similar. I think that in the rather short term the market would stabilize," the expert said.

Murovtsev believes that transit passenger flow would be redistributed to flights of European and Asian airlines. Airlines would compete for passengers who previously used the services of Russian airlines. Agencies would be able to offer a wide range of options for flights at market prices to their clients.

He said that three Ukrainian airlines flew to Russia – Ukraine International Airlines (UIA), Dniproavia and Motor Sich. In addition, UTair and S7 carried the major part of transit passengers to various Russian cities.

"Here we should wait for the decline in sales in the short-term outlook, maybe, before the New Year. This concerns 20% of total market sales. In several months several options for the development of the situation could be seen. First, flying of passengers from Ukraine to Russia via the transit hubs, and taking into account geography, this will be Minsk, Vilnius and Riga. Secondly, the large part of passengers, especially from the Ukrainian regions, could move to the railways," he said.

Murovtsev said that Ukrainian airlines would win if strong Russian rivals leave the market.

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