Summary
- UIA is facing bankruptcy proceedings filed by Ukraine’s state-owned bank because of its massive debt of $568 million.
- The airline has not operated any usually scheduled flights for nearly two years, with leasing firms recalling 10 of its aircraft.
- UIA has faced quite a few challenges, including the shooting down of Flight 752 and the COVID-19 pandemic, which severely impacted business passenger flights.
Amid a dire financial situation, Ukraine’s flag carrier UIA (Ukraine International Airlines) is facing legal motion taken by the country’s state-owned bank. The airline currently holds lots of of thousands and thousands of dollars in debt and has been reportedly auctioning off assets below market value.
Bankruptcy proceedings launched
As per , state-owned bank Ukreximbank filed a lawsuit against UIA on October thirty first. Bankruptcy proceedings then began through Kyiv’s Industrial Court on November twenty second. Forbes Ukraine notes that the corporate currently holds some Hr 20.5 billion in debt – akin to $568 million.
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The airline ceased business passenger operations because of Russia’s full-scale invasion on February twenty fourth, 2022, meaning the carrier has not operated any usually scheduled flights under its own name in nearly two years. The Kyiv Independent notes that leasing firms have since recalled 10 of UIA’s aircraft that were stored safely outside of Ukraine. The airline sought to seek out activity for 4 of its remaining jets – including the wet leasing of aircraft to airBaltic.
Nevertheless, this ceased in September 2022, with no UIA flights operating since. These flights were halted partially because of disputes between two of the airline’s primary shareholders. Speaking with Forbes, sources from the airline reported in late October that the corporate’s assets were being auctioned off for prices significantly below their market value.
A continuing series of unlucky events
the past 4 years, UIA has taken hit after hit.
On January eighth, 2020, Ukraine International Airlines Flight 752, flying from Tehran to Kyiv, was shot down by Iranian forces shortly after takeoff. Everyone onboard was killed, and it took two years before the Iranian government declared that it had begun paying compensation to families.
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Months later, the COVID-19 pandemic would actually emerge and halt nearly all of business passenger flights amid heightened border restrictions. With a lot of these restrictions lasting for well over a 12 months, there would only be a really short window of ‘normalcy’ before Ukraine would suffer again from Russia’s invasion on its eastern border. Amid this turmoil, the airline as a company entity has existed for over 30 years.
The UIA fleet in December 2023
As per data from , UIA’s fully inactive fleet consists of 11 aircraft. From Boeing, there are three 737-800s, one 737-900ER, and two 767-300ERs. The remaining five jets are Embraer regional jets: 4 ERJ-190s and one ERJ-195. Of the 11 aircraft, 10 are parked at Kyiv Boryspil International Airport, while a lone ERJ-190 is parked on the airport in Odesa.
A few of the 737s that exited the UIA fleet in 2022 after the invasion are actually flying for Lithuania’s KlasJet, while others are flying for Turkey’s Mavi Gök Airlines (MGA). Several have also been re-registered inside Ukraine to Windrose Airlines.
What do you think that shall be the fate of UIA? Will declaring bankruptcy allow it to resume operations sooner or later, or will a brand new flag carrier have to be established if or when the war finally ends? Share your thoughts by leaving a comment!