You're reading: Kolomoisky’s airline sues Infrastructure Ministry over Ryanair’s entry, demands $772,000

Ukraine International Airlines, which controls nearly 50 percent of the passenger market in Ukraine and is owned by billionaire oligarch Ihor Kolomoisky, filed a lawsuit against the Infrastructure Ministry and Irish low-cost carrier Ryanair. It demands Hr 20 million ($772,000) in in financial compensation.

The company also filed another lawsuit against Lviv International Airport and Ryanair with the demand to cancel the contract with the carrier as, according to UIA its Irish competitor has got a bunch of preferences and discounts the Lviv Airport hadn’t provided for Kolomoisky’s airlines, according to the lawsuit, details of which Infrastructure Minister Volodymyr Omelyan published on Facebook on July 26.

“Why is it so hard for Ryanair to come to Ukraine? The experts have many answers: bad negotiations, ministry’s illegal intervention into a business process or Ryanair’s aggressive style. My answer is – Ukrainian oligarchs are inviable on the competitive market and are scared of any hints on free competition,” Omelyan wrote.

Omelyan said that Kolomoisky’s airline demands financial compensation from the state as it was forced to lower the prices ahead of Ryanair’s enter and that caused financial harm to the company.

The Irish low-cost carrier announced it was going to enter in Ukraine in October with four new routes from Kyiv and seven from Lviv International Airport. It signed a contract with Lviv International Airport, but not with Boryspil Airport and Kyiv Zhulyany International Airport.

In an official statement, published on July 10, Ryanair said it canceled its intentions to enter Ukrainian market, including a presence in Lviv and Kyiv, and accused Kyiv Boryspil International Airport of protecting the interests of carriers, specifically Kolomoisky’s Ukraine International Airlines.

“On behalf of Ukrainian visitors and consumers, we regret that Kyiv (Boryspil) Airport has demonstrated that Ukraine is not yet a sufficiently mature or reliable business location to invest valuable Ryanair aircraft capacity,” said David O’Brien, Ryanair’s chief commercial officer.

Ukrainian International Airlines in an official statement denied Ryanair’s charges, saying Omelyan seeks publicity and PR by blaming a respectable company.

“UIA denies being part of negotiations between two business entities, namely Kiev Boryspil International Airport and Ryanair. Therefore, it is not in a position to affect the negotiation process by any means,” said the official press release sent to the journalists on July 11.

After a major blow to Ukraine’s reputation, caused by Ryanair’s withdrawal, Ukrainian government reasserted the control over the negotiations. After meeting with Ukraine’s Prime Minister Volodymyr Groysman, Pavlo Rjabikin, the head of Boryspil Airport, the decision was made to renew negotiations with the carrier and have the National Anti-Corruption Bureau of Ukraine and the Anti-Monopoly Committee of Ukraine investigate why talks fell apart.

Soon after, on July 14 Ryanair came back to Lviv. Lviv airport’s director general, Tetiana Romanovska has said to journalists that although Lviv airport rejected some of the Irish low-cost carrier’s demands, the contract was re-signed.