The company took this decision due to its negative outlook for the industry
Ukraine International Airlines has postponed the sale of tickets until 1 July 2020 on the official page on Facebook wrote UIA President Evgeny Dykhon.
Dykhon said the aviation market would not reach the level of plans for 2020 before 2023, while the first would be restoring medium-haul flights, and the airline revenue would decline by $ 314 billion this year.
The UIA president also stated that it plans to change the company’s base product based on a deeper understanding of the impact of COVID-19, including:
- Refusal of hot food and provision of packaged food
- Refuse to carry cabin luggage
- Contactless check-in
- Temperature screening terminal
- Temporary Closing of Business Lounge
- Sales suspension in duty free
Dykhne said that the quick change for remote work would spur structural changes after СOVID-19 and slow down the recovery of demand, including commercial flights that would suffer significant losses.
According to Dykhon, the priority of airlines would be to reduce costs by managing their fleets effectively: the airline would use termination of contracts to reduce the fleet, and would also try to reduce lease payments.
The UIA president also mentioned that fewer aircraft would heal the balance by reducing sales and lowering prices and restructuring debt obligations, which would cause oversupply in the market and affect supply plans. Accordingly, the oversupply of leased aircraft would halt production growth, while the replacement (return of the old type fleet with the introduction of new types) could be avoided.
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Earlier, Ukraine’s Minister of Infrastructure Vladislav Krikly stated that Ukraine had not yet restored international regular air service, and passenger crossing points continued to operate in a special mode. At the moment, Ukrainian airports accept only special flights on which Ukrainians return home. Departure flights are also available for foreigners and citizens with a certificate of permanent residence or long-term contract to work abroad.
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