You're reading: Higher economic court postpones hearing of Swissport’s counterclaim in dispute with UIA

The Higher Economic Court on June 11, 2013 postponed the hearing of a counterclaim by Swissport International Ltd. against a ruling under which the company on April 27, 2013 lost the right of ownership of Swissport Ukraine LLC, as UIA bought the company under a court ruling, a well-informed source has told Interfax-Ukraine.

The source said that the hearing was postponed for two weeks.

As reported, on March 27, 2013 the Ukrainian court ruled that UIA is to buy a 70.4% stake in Swissport Ukraine for just $400,000, while the real value of the company is $25-30 million.


However, UIA insists that all rulings are legal and the purchase was approved by the court on the basis of an appraisal endorsed by Swissprot International and under conditions earlier discussed by the sides. The forced purchase mechanism was agreed by the sides, and each of the sides could apply it on the certain conditions.


UIA noted that Swissprot International entered the business in 2006, after acquiring a stake in its handling agent, when UIA was under state control. After the transaction, UIA lost almost all the rights to the company’s management, although it held almost 30% of shares in the company. UIA also received a three-year contract on servicing by Swissport International without the right to cancel it. After the privatization of UIA, the airline tried to agree on civilized rules of the company management, although all talks stuck. Swissprot International summoned a meeting of shareholders for March 6, 2012, where the company supported the dilution of the UIA’s stake and approved the appraisal of the stakes in Swissprot Ukraine for their purchase.


UIA was founded in 1992. The company has been fully privatized.


Its fleet consists of 26 Boeing aircraft and one Embraer-190. Its home airport is Kyiv’s Boryspil International Airport.


Swissport International Ltd. provides ground services for around 118 million passengers and 3.5 million tonnes of cargo a year on behalf of some 650 client-companies in the aviation sector. With a workforce of around 40,000 personnel, Swissport is active at 180 stations in 37 countries on five continents, and generates annual consolidated operating revenue of CHF 1.9 billion.