Ukraine's top airline plans to add routes in Middle East

As the first President of Ukraine, one of Leonid Makarovych Kravchuk's first orders of business was to pass a decree that launched the country's first airline in 1992.

Handed the reigns to oversee Ukraine's transition from Soviet rule to independence, he dedicated much of his time to building the airline. Since stepping down as president in 1994, he has continued his role as a voluntary ambassador for the airline and was recently in the UAE to join the festivities of the airline's inaugural flight to Abu Dhabi. Usually reticent and known for his diplomacy, Kravchuk dropped his guard as Emirates Business discussed issues facing the airline, the country and their future.


Are you content with Ukraine International Airline's progress over the years?

When I took office in 1991, we knew all the new airlines preparing for launch would be privately owned so we decided to create at least one state Ukrainian airline and this airline has been operating for many years now.

This company is not just state owned, it has other share holders such as the European Bank for Reconstruction and Development and Austrian Airlines. But the state holds the majority share. I think this structure and mix has been successful because the airline is practically the biggest and largest in Ukraine and the most successful. So this has been an effective business model. For the past nine years it has paid money into the state budget and not vice versa. It does not get money from the state. Yet it keeps growing its fleet and is getting new aircraft.

Hasn't the interest in the Middle East come a little late?

This is the new stage in the airline's development and the main task is to increase its business presence in Eastern countries. Earlier, it used to be only Western and European destinations and those within Ukraine. It is important for us to develop routes in the Middle East and Gulf. This is important because Ukraine requires great investment.

Is drawing investment the only motive?

Well not only investment but tourism too. Of course, Ukraine can sell its own products here. Right now we have a bilateral trade balance of $500 million (Dh1.8 billion) per year between Ukraine and the UAE. We sell metal, grain, construction material and also high-tech goods such as software. We import exotic goods from the UAE.

What is the general perception of Ukraine in other countries?

When we talk about tourism in general you need some culture, notwithstanding the nationality or the region. When a person comes to another country he or she must respect the culture of that country. Of course, there can be a lot of misunderstanding or some sort of miscommunications. For example, Russians and Ukrainians are used to open tourism where you can do whatever you want: big parties, a lot of emotion, celebration and passion. Now sometimes in Eastern countries it raises a misunderstanding. It is not that people try to do something bad; they are just used to that sort of behaviour and in countries of this region it can be misunderstood.

The problem is that right now not all the population of Ukraine travels abroad. Many people cannot afford it. People who are travelling a lot, let's say to the UAE, have a lot of money. But money doesn't mean they have a lot of culture and education.

Is there a language barrier for those entering Ukraine?

The situation is changing fast. The young population of Ukraine speak fluent English. Tourism is well organised. For example, 32 big hotels are being constructed right now in Kiev, half of them five-star.

Does Kiev require so many hotels?

Yes, we have a lot of tourists coming in. Many people are discovering Ukraine. You know we are only 18 years old. So it is still a young state.

How is the state supporting the airline and tourism?

To tell you the truth, our state right now cannot support any airline because of the crisis. But the state as a shareholder can support with policy decisions such as reducing tax burdens. If it was not doing that, this airline would not have survived.

Can't more be done?

We have a difficult economic situation right now and add to that the global crisis. But eventually when the situation gets better of course the state will pay more attention to its own airline.

Fifteen years have passed since your presidency. Are you pleased with the direction the country has taken?

I want to see Ukraine in the European Union. Of course, there are a lot of difficulties, both internal and external. Russia is a difficult partner. It cannot imagine letting Ukraine go its own way. Russia wants to keep Ukraine in its sphere of influence.


PROFILE: Leonid Makarovych Kravchuk Former Presidentof Ukraine

Kravchuk, who was born on January 10, 1934, is a Ukrainian politician. He was the first President of Ukraine from December 5, 1991, until his resignation on July 19, 1994. After a political crisis involving the President and the Prime Minister, Kravchuk resigned from the Presidency, but ran for a second term as President in 1994. He was defeated by his former Prime Minister, Leonid Kuchma, who served as President for two terms.

 

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