You're reading: Ukrainian State Air Traffic Services Enterprise could see revenue down in 2014 due to closure of airspace over a part of Ukraine

The Ukrainian State Air Traffic Services Enterprise (UkSATSE) due to the closure of airspace over a part of the country could see its revenues drop by 70-80 percent in 2014 compared to 2013, the press service of the enterprise has told Interfax-Ukraine.

The company said that due to a crash of Malaysia Airlines Boeing-777 which was flying from Amsterdam (the Netherlands) to Kuala Lumpur (Malaysia) a ban on the use of airspace for civil airplanes in the southeastern region of Ukraine was imposed. Taking this into account, international airlines that fly from central and Northern Europe, America and Canada to Southeast Asia have started bypassing the airspace over the counteterrotist operation zone.

A part of transit air movement was transferred northward of Ukraine, via the airspace of Belarus and Russia, and some of airplanes southwards, using airspace of Romania, Bulgaria and Turkey.

After July 17, 2014, UkSATSE services 720 flights a day on average, including 85 domestic flights, 315 international flights and 320 transit flights. Before July 17, UkSATSE serviced around 1,500 flights, including 85 domestic flights, 330 international flights and 1,085 transit flights.

According to UkSATSE, transit flights via Ukraine’s airspace were suspended by the following international airlines: Air France, Lufthansa, Aeroflot, Singapore Airlines, Emirates, Qatar Airways and British Airways.

In addition, Transaero, Turkish Airlines, LOT and Belavia cut the number of transit flights.

“Taking into consideration the fact that the airspace over open sea (Black Sea) after the annexation of Crimea by Russia under recommendations of international organizations and agencies, such as ICAO, EASA, FAA and IATA, is used less by airlines, and this cannot but affect the volumes of services provided by UkSATSE. The circumstances could result in the fall in revenues of the air navigation provider by 70-80 percent compared to 2013, and postpone the projects on the modernization of air navigation system of Ukraine foreseen in the Local Single Sky ImPlementation (LSSIP),” the press service of UkSATSE said.

The enterprise says it hopes that armed hostilities will stop in the eastern part of Ukraine and peace will be established and it is waiting for the restoration of the transit flow, as the routes in the Ukrainian airspace are efficient in the Southeast Asian direction and comfort in the level of servicing.