First round table on commercial aviation development was held in Kyiv

On March 27, 2013 in Kyiv took place a round table "Commercial Aviation: International Experience & Ukrainian Realities" devoted to the problems of aviation industry in Ukraine and the prospects for its development. This is the first and the only platform for professional business communication of the members of Ukrainian aviation industry.

Besides the problems unveiled by the crisis of AeroSvit there have been a large number of topical issues requiring solutions for many years. Among them: the modernization and expansion of the air fleet, aircraft leasing and credit financing, monopolization of the market, assignment for international routes, crew designation, hiring of foreign specialists, tax and customs issues and many others.

International participants of the Ukrainian aviation market indicate difficulties connected to the business conduction in Ukraine but tend to work with colleagues and government to overcome them together.

The objective of the round table is to start a dialogue between the market operators, consultants and regulators, aimed at the industry development and modernization of its legal regulation.

"In Ukraine, there has not been a platform, where the players of the aviation market could discuss the current situation, exchange forecasts and share experiences with their colleagues. Turkish Airlines as a global international company has a unique expertise. Our colleagues from the other airlines have equally unique experience. Of course, this round table will help identify and solve the current unsettled issues and will promote the development of the market in general, especially after exit of one of the major players," highlighted Mustafa Hakan Yilmaz, the Head representative of Turkish Airlines in Kyiv.

"The aviation industry of Ukraine - like a roller coaster: the entry of new carriers and large-scale infrastructure development in connection with EURO 2012 are replaced by the bankruptcies of airlines. LF Asters always in the thick of things, and we are ready to share their experience and work to improve the law and the investment climate in the aviation industry. Undoubtedly, this round table will be very interesting and important step in this direction," Vadim Samoilenko, partner of law firm Asters.

Mr. Samoilenko defined in report main legislative and law enforcement issues in Ukrainian aviation. In particular, adjustment problems: designation of air carriers and code-sharing on international routes, main issues of Cape Town Convention.

Resonant theme of airline bankruptcies in Ukraine was highlighted by lawyer, senior partner of law firm Ilyashev and Partners, Roman Marchenko.

Mr. Marchenko provided brief analysis of the current situation and proposed an algorithm for problem solving, with emphasizing of details of the legislation, interaction of the leading experts and government agencies, and admitted need of strict plan preparation.

Mr. Marchenko supported colleagues in activities plan: "We have decided to support this event to share its extensive experience and expertise working with major airlines. Our company for many years provides legal support for a number of aviation companies, airlines, airports, and we try to do everything for the business development of our clients. Our contribution to the industry is improvement of the legal framework of our country in the field of aviation. We look forward, in the framework of the round table to discuss the critical moments, to communicate with the participants the aviation market and perhaps by joint efforts find a solution to the existing problems."

Alexander Kiva, Vice President - Deputy General Designer of the State Enterprise Antonov told the round table about the potential of the domestic aviation industry, new regional Antonov aircraft, results and prospects of their use, including the airlines of Ukraine and Russia on domestic and international routes. He also proposed measures to stimulate domestic airlines operating in mastering new Ukrainian aircraft.

Eugene Treskunov, UIA Executive Vice President for Strategy and Development shared his vision of adaptation of Ukrainian legislation to EU norms, and other aspects of the cheap upgrading of fleet of domestic airlines: "Regulations of the EU Community in general and those specific regulations of EU-member states basically provide VAT-free regime for importing the commercial aircraft and their components disregard of the acquisition method. Ukrainian legislation allows only import of aircraft and only under operating lease, to be free of VAT payments. Besides that the sovereign credit ranking of Ukraine under OECD assessment is at the lowest category that leads to application of the highest interest rates and the lowest guarantee coverage from export-credit agencies even comparing with credit terms for some other CIS countries. These and other factors do not allow Ukrainian airlines to compete with EU carriers in respect of their costs."

Also Ukrainian market of low-cost airlines was discussed. Alex Burchevsky, counsel of Wizz Air Ukraine Airlines, told what to expect from low-cost business in Ukraine.

Mr. Burchevsky told about main challenges and trials faced by Wizz Air Ukraine on way of formation.

Also Mr. Burchevsky described the most common regulatory problems that may face low-cost airline on Ukrainian market. Among them:

• Bilateral regime of air-traffic rights;

• Visa regime with many neighboring countries;

• Strict model Rules of Passenger Carriage, approved by the State Aviation Service of Ukraine, favorable towards "traditional" carriers;

• Ukrainian customs and tax regulations do not allow such common European practice as "pooling" of spare parts with maintenance provider;

• Ukrainian pilots and cabin crew are allowed by Ukrainian regulations to fly less than their colleagues in Europe or United States;

• And others

Round table gathered more than 80 participants, including representatives of Ukrainian and international airlines, aircraft industries and enterprises, law firms, consulting and insurance companies, and media representatives.

Event organizer – Event Envoy Company.

Legal Partners of the round table: Asters and Ilyashev & Partners.

General media partners: InvestGazeta and delo.ua.

Media partners: Vlast Deneg, Business Ukraine.

Information support:

• CTS

• www.aviaport.ru

• www.avianews.com.ua

• www.wing.com.ua

• expomap.ru

Reference

Since 1995 Asters has developed one of the strongest aviation practices in Ukraine. Its lawyers regularly advise manufacturers of aircraft and their components, Ukrainian and international cargo and passenger carriers, airports, banks, insurance companies, tour operators and other members of the aviation market in the area of Ukrainian and international aviation, corporate, financial, licensing, antimonopoly, tax, administrative, labor law.

Among the firm's aviation clients are Austrian Airlines, The Boeing Company, Wizz Air Ukraine Airlines LLC and others. As an exclusive Ukrainian member of L2B Aviation, the largest international network of aviation law firms across the globe, we benefit from strong relations with aviation community worldwide.

Ilyashev & Partners Law Firm was founded in 1997. It has an extensive experience of legal services for aviation companies, airlines and airports. The company provided its services to Antonov Airlines, UTair, Aerostar, British Airways, the world's largest air broker Chapmanfreeborn, SE Antonov, National Aviation University, Kyiv Aircraft Repair Plant No 410 of Civil Aviation, Konotop Aircraft Repair Plant Aviacon, Volchansk Aggregate Plant and many others.

The Transportation Committee of Ukrainian Parliament has recommended Ilyashev & Partners as the best Ukrainian law firm in aviation area. Gvardia Rating Magazine announced Ilyashev & Partners the best law firm in the transportation area.

Event Envoy Company is a specialized agency for organization and management of events of different scale. Many years of experience of the team combined with innovative approach, continuous improvement of techniques and technologies of event management - the three pillars on which we base our work.

www.eventenvoy.com.ua

Interfax-Ukraine News Agency is the main news partner of the event.

The press release has been issued on commercial terms. The Interfax-Ukraine News Agency is not responsible for its contents.