Requirement to sell currency income was shock for aviation market – UIA manager
The requirement of the National Bank of Ukraine (NBU) to sell 75% of currency income was a serious obstacle in the operation of the Ukrainian aviation market, according to head of the Ukraine International Airlines (UIA, Kyiv) supervisory board Aron Maiberg, speaking in an interview with Interfax-Ukraine.
"I think that it was shock for the Ukrainian aviation market. I don’t know what to compare it with. I think that it is equal to losses we saw before in its influence. What has happened? This is not only sale of 75% of currency income, these are serious restrictions for the terms of buying foreign currency. We looked awful before all our western contractors. We were not able to fulfill our liabilities, we were late."
He said that companies lost money out of the blue, as currency was sold at one exchange rate and bought at another.
"This money did not go to the budget. This money went to the same commercial structures as we are, but they went there absolutely unjustifiably. I don't see how this could influence the improvement of the country's budget or the improvement of the lives of people. I think that this requirement was absolutely thoughtless. It is hard to judge other businesses, but it was catastrophe for the aviation business," Maiberg said.
He said that in different times, when similar currency restrictions were imposed, exceptions were made for the aviation industry, and this is done all over the world as aviation is an international market.
"By the way, if we leave speculation regarding why Wizz Air left the Ukrainian market, it is clear that this is a foreign, plainspoken, company which clearly said why it left, and the main reason is currency regulation. If there was another reason, they would not have scruples to name it. Moreover, they gave the solution – now we will fly as foreign airline, and these rules would not be imposed on us. And what do Ukrainian airlines have to do? They don't have this flexibility in maneuvers," he said.
He said that if the situation does not change in foreseeable future, the consequences could be serious for the whole sector.
"Actually, UIA's solution that I announced at a press conference is simple: the NBU's decision on Ukrainian airlines with one stroke of the pen," Maiberg said.
UIA was founded in 1992. It is the largest Ukrainian airline. Its base airport is Boryspil (Kyiv). The UIA fleet consists of 31 aircraft, including 27 medium-haul and four long-haul airplanes.
