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Ukraine’s Aerosvit terminates over 90 pct of its flights

January 15, 2013, 12:31 UTC+3
Earlier, Aerosvit served 80 international routes, and with its fleet of 29 planes it was Ukraine’s major aviation carrier
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KIEV, January 15 (Itar-Tass) — Ukraine’s Aerosvit aviation carrier, which experiences financial problems, terminates from Tuesday operation of over 90 percent of its flights, Ukraine’s state aviation service reports.

To the end of the winter schedule, the company will service only three long-haul routes – to New York, Bangkok, and Beijing, as well as regional flights – to Ivano-Frankovsk and Dnepropetrovsk. To January 19, the company will operate flights to Ho Chi Minh, and on January 19 it will make a flight to Goa to bring back its passengers. From January 19, Aerosvit will not be serving medium-haul flights.

Earlier, Aerosvit served 80 international routes, and with its fleet of 29 planes it was Ukraine’s major aviation carrier.

Now, Aerosvit has began passing its assets to its nearest competitor – the Ukraine International Airlines. The latter has accepted already two Boeing 737-800 NG, which Aerosvit used to exploit.

Earlier, Aerosvit’s press service reported the aviation carrier suspended from Tuesday operation of flights between Kiev and Moscow for commercial reasons.

“The company presents its apologies to passenger as it cancels flights to/from Moscow and suggests they take flights of partner carriers or be reimbursed in accordance with the rules of aviation transportation,” the statement reads. “The decision Aerosvit made was caused by termination of its participation in IATA BSP regional systems of mutual settlements, including in BSP Russia. Thus, the commercial use of flights to/from Moscow has decreased dramatically, which makes it ineffective to use this competitive air line.”

On January 10, the International Air Transport Association /IATA/ informed Aerosvit that it had to IATA’s instruct regional systems BSP /Billing and Settlement Plan/ to suspend settlements between agents and the aviation carrier via the BSP system. IATA said it recommended the agents to have direct settlements with the carrier.

“Aerosvit is very sorry about IATA’s decision, which violated the mechanism of relations between the carrier and the agents – participants in the RBP in over 50 countries,” the report reads. Aerosvit hopes IATA would reduce the required deposit, which IATA had asked for to prolong the company’s participation in the BSP system, to the level, which reflects the company’s present route net.

The company said that until it resumes IATA’s BSP services, Aerosvit will be using alternative channels to distribute the air transportation, including its own online trade and direct settlements with aviation companies and agents. As an alternative system to sell tickets is launched, Aerosvit plans to resume flights to Moscow.

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