Air travel to #Ukraine goes up

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During the 2012 UEFA Europe Cup, the Europeans actually found Ukraine. The quantity of passenger site visitors between the EU and Ukraine has been steadily rising yr by yr. Final of the UEFA Champions League, which was held in Kyiv on May 26, 2018 between Spanish membership “Real Madrid” and English “Liverpool” and matches of Ukrainian soccer golf equipment in European competitors season of 2019-2020, which came about in Ukraine , inflicting appreciable concern of tens and a whole bunch of 1000’s of European followers who got here to Ukraine to see sports activities competitions. Each of them brings again to home many impressions from what she or he have seen on this nation, and shares acquainted particulars of the journey.

Picturesque Ukraine

In addition to sports activities, one can see in Ukraine excellent architectural monuments belonging to the listing of UNESCO World Heritage Sites – St. Sophia Cathedral, Kyiv- Pechersk Lavra and lots of different monuments.

Air transportation from Europe is commonly used by Jewish representatives who go to Ukraine within the holy locations of their folks in Uman, Hluhiv, Berdychiv and different cities.

The EU residents have found Ukrainian ski resorts, reminiscent of Bukovel, Dragobrat , Slavske, Pylypets. Ukrainian resorts are just like the  European ones by way of  consolation, however on the similar time their price is less expensive.

The Europeans, who’ve as soon as visited Ukraine need to return to this lovely nation, as a result of of its pleasant residents, wonderful delicacies and really average costs.

Economic part

The Czech Republic, Poland, Croatia, Bulgaria and different Eastern European international locations have considerably elevated their financial potential lately, because of investments in vacationer infrastructure, leisure services and transport.

Ukraine additionally has a big tourism potential: the Carpathian and Crimean mountains (the latter at present are on momentary uncontrolled territory), distinctive rivers – the Dnieper, the Desna, the Pidennyy Bug, Synevyr and Shatsky Lakes, resorts of the Black and Azov seas, seven wonders of Ukraine , distinctive fortresses and castles, lovely metropolis structure of Kyiv, Lviv, Odessa, Kharkiv, Dnipro, Chernihiv and lots of different cities.

In financial phrases, passenger site visitors to Ukraine has been rising for a number of years due to low-cost airplane tickets. In 2019, Ukrainian airports obtained a complete quantity of about 23 million passengers. Most of those transportations are worldwide, since there may be little demand for home flights.

By variety of passengers carried, the Ukrainian aviation business ranks second amongst Eastern European international locations, second solely to Poland https://cutt.ly/7r2onV7 . Since 2016, passenger site visitors within the aviation sector has elevated by 100%. This was facilitated by the visa-free regime with the international locations of the European Union.

This yr, airplane tickets costs to Ukraine can improve up to 15 %. The Ministry of Infrastructure of Ukraine is planning to considerably improve charges for air navigation providers for airplanes in the primary worldwide airport of the nation – Boryspil – in 2020. This is said within the draft order “On Amendments to the rates of payment for services of air navigation service of aircrafts in the airspace of Ukraine” https://mtu.gov.ua/initiatives/view.php?P=257 .

At the start of the yr, in Europe, the common price for non-scheduled air navigation providers on the airport and in its space was 166 EUR per unit of service, and decreased by 6% in comparison with 2019. Ukrainian Ministry proposed the speed quantity to 396.57 EUR, which is 2.Four occasions greater than the typical charges in European airports. The present price for Boryspil International Airport is now 210 EUR.

Airspace administration within the European Union is carried out by the Member States collaborating within the Eurocontrol mission, https://www.eurocontrol.int/ – an intergovernmental group regulating air site visitors. Ukraine can also be making important efforts to signal a Common Aviation Area Agreement with the EU.

According to a Eurocontrol doc quantity 07.60.01 “Principles of determination of cost basis for route charges and the calculation of unit rates”, which is efficient in Ukraine, supplied that the price for the providers of air site visitors on the route should mirror the prices incurred both immediately or not directly within the strategy of offering route providers, together with Eurocontrol prices.

According to the provisions of the International Civil Aviation Organization (ICAO) paperwork ( Doc 9161 and Doc 9082), it’s established that the distribution of air navigation prices amongst airspace customers ought to be equitable.

Aviation business consultants emphasize that Boryspil International Airport is Ukraine’s foremost aviation gate – it serves greater than 97,000 flights a yr, whereas the remaining airports in Ukraine whole 85,000. A big improve in charges of air navigation service will trigger a scenario, during which the airways, for which Boryspil is the primary airport , will probably be compelled to subsidize the businesses that use the providers of different Ukrainian airports.

Transport technique

Bearing in thoughts the bottom per capita revenue in Europe, the Ukrainian Ministry of Infrastructure is planning to set the very best price for air navigation providers in Europe. Minister Vladislav Krykliy headed the allowing heart of the Ministry of Internal Affairs earlier than being appointed to a excessive place. Nevertheless, growth of the transport technique of the State, which has a novel potential for cross-border transport corridors is definitely obligatory and requires related abilities and expertise.

The justification for the necessity to improve the price of air navigation providers seems to be very unusual. The Ukrainian Ministry notes that the new rules have been harmonized with Eurocontrol and calculated in accordance with worldwide requirements. But it isn’t so. There was no partaking with European regulatory companies, and the Ministry of Infrastructure has not confirmed the existence of efficient management over monetary efficiency of the nationwide supplier of air navigation service – the state enterprise “Ukraerorukh”. There had been no significant consultations with the companies-users of the airspace of Ukraine.

The foremost expenditure of “Ukraerorukh” prices – 70% are the spendings on upkeep of the personnel. The productiveness of dispatchers in Ukraine is six occasions decrease compared to Eurocontrol member international locations. For instance, a supervisor in the Dnipro regional branches serves 43 flight hours per yr, that’s 40 occasions lower than the typical efficiency amongst members of Eurocontrol. The inefficient operational construction of manufacturing assist from the 4 regional facilities, whereas different European international locations management the territory of Ukraine from one or two facilities, results in extra numbers, pointless spend of operative and administrative prices, and so on. In the states  – members of Eurocontrol, there has been an extended decline in assist employees per dispatcher, and as of 2018 the variety of assist employees per dispatcher was 2.1 items. In Ukraine, there are 4.4 auxiliary workers for every dispatcher, which exceeds the European price greater than twice. Aviation consultants say that that is the explanation for the extreme price of offering air navigation providers in Ukraine.

If the rise initiated by the Ministry of Infrastructure  is efficient, than the revenues of UKRSATSE from terminal ATS shall be 2.5 occasions greater than the prices of the related providers.

In May 2019, by its decree #293, the Cabinet of Ministers permitted the Concept of Boryspil Airport Development by 2045 as an aviation hub. Nevertheless, with out related financial situations in Ukraine will probably be not attainable to show the airport Boryspil into worldwide aviation hub.

Limitations and obstacles coverage

Having regard to all of the circumstances during which corporations need to work within the aviation business of Ukraine, it’s clear that they work not as a result of care of the state, however regardless of it. Proposed price of fee for air navigation providers for 2020 should not economically justified and irrelevant to the paperwork of ICAO and Eurocontrol.

On February, 12, 2020 the assembly of the Airport Committee of the International Airport Boryspil was held. Its members condemned the Ministry of Infrastructure’s plans to double air navigation service charges. It is unknown whether or not the regulator listens to the opinion of knowledgeable association.

There are many precedents for making unjustified selections within the discipline of transport and communications. In most international locations, there’s a zero price of excise responsibility on aviation gas worth added tax. This permits passengers to get pleasure from reasonably priced and handy providers from airways. However, in Ukraine, state regulators adhere to a strict approach. From the starting of 2019, to be able to fight the misuse of aviation gas, in accordance with the amendments to the Tax Code, excise responsibility charges on aviation gas have elevated in 10 occasions. As aviation gas in Ukraine is dear, it due to this fact impacts the price of tickets for passengers.

The Ministry of Infrastructure is systematically concerned in numerous high-profile scandals, together with corruption. Recently, the Minister of Infrastructure obtained a proposal to nominate Dmytro Padalkin as the top of state enterprise “DerzhHidrohrafiia”. This individual was beneath justified allegations of corruption and abuse of workplace in his personal pursuits https://cutt.ly/5r2bVPV .

Such scandals and allegations of corruption are already commonplace for Ukraine and don’t shock anybody. But in civilized international locations is just unacceptable when officers use their place and affect so as to get unlawful beneficial properties from the adoption of regulatory selections.

What ought to be the precise options?

Accounting Chamber of Ukraine in response to the 2015-2017 Audit years discovered, that unjustified expenditure of public enterprise ” Ukraerorukh” which is beneath management of the Ministry of Infrastructure, amounted to about 70 million, inefficient expenditure of the prices is greater than 300 million UAH.

Instead of returning order in monetary actions of “Ukraerorukh” and Ukrainian airways creating acceptable situations and incentives to extend passenger site visitors, additional development of Ukrainian market of air transportation, the Ministry of Infrastructure plans to considerably improve the speed prices for air navigation providers.

Without any doubts, it will improve the price of tickets and cut back passenger aviation corporations by the airports of the nation, together with Boryspil. With its distinctive geographical location, Ukraine might turn into a serious European transport hub, whereas Ukrainian regulator goes by easy options with very questionable justifications thereto.

According to the Air Code of Ukraine and the doc of Eurocontrol quantity 07.60.01 “Principles of determination of cost basis for route charges and the calculation of unit rates” the charges for the AIE can’t be modified in the midst of the yr, any adjustments will be made solely from 1 January of the respective yr. Thus, on this yr, in response to the necessities of Eurocontrol, the charges for air navigation providers can’t be modified.

The prices might solely happen after session with airspace customers, carried out throughout the earlier yr on a specific schedule. There was no session final yr on altering charges for 2020.

Eurocontrol, opposite to the statements of the Ministry of Infrastructure of Ukraine didn’t not anticipated and never coordinated any new price cost of air navigation providers.

The introduction of price prices for aeronautical providers is economically unjustified and discriminatory for airways that perform flights in airport Boryspil as a result of the service space of the airport is many occasions lower than the price of air navigation providers round different airports.

The precise trigger goal of improve in prices for air navigation providers is inefficiency of the supplier (low labour productiveness, extreme employees, dangerous group of labor, and so on.). There are not any actual financial causes for rising the charges. In the case of this determination, the charges of air navigation providers in Ukraine would be the highest in Europe.

Consequently, the Ministry of Infrastructure ought to take heed to rational calculation, place of the business and instantly rethink its determination making an allowance for the financial realities, European laws and worldwide expertise.

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Category: A Frontpage, Ukraine