AIR U. K., LTD.: United Kingdom (1980-1998). Britain’s third largest scheduled airline is created on January 16, 1980 through the merger of Air Anglia, Ltd. (founded in 1970), Air Wales, Ltd. (founded in 1977), Air Westward, Ltd. (founded in 1976), and British Island Airways,
Ltd. (1) . Air U. K. is a subsidiary of British Air Transport Holdings, Ltd., which in turn is 90% controlled by the British and Commonwealth Shipping Group. Neil Foster, a former professional hockey player, is named chairman.
Initial operations are flown with various equipment, including Fokker F.27s and an F.28, to 21 scheduled destinations in Britain and 8 international points in Europe: Amsterdam, Bergen, Brussels, Copenhagen, Dusseldorf, Esbjerg, Paris, and Stavanger.
Charter flights are also run; however, the company must coordinate its operations from the provincial centers of Crawley (head office), Stansted Airport (hub building), Norwich (maintenance), and Aberdeen (overnight center for crews and aircraft). An alliance is immediately entered into with KLM (Royal Dutch Airlines, N. V.) in which the Dutch flag carrier provides ground handling in Europe on behalf of the new British carrier; code-sharing will later be introduced on routes between the U. K. and the Netherlands.
On February 18, the company joins the Royal Mail program known as “Spokes from Speke,” flying a BAe (HP) Dart Herald each night from London (CTN) to the sorting hub at Liverpool (Speke Airport) and on to Belfast for distribution. Another Herald simultaneously flies from Northern Ireland-Liverpool-Luton.
As a result of the world economic recession and fuel and start-up costs, severe, but unspecified, financial reversals are suffered in 1981, the first full year of service. The flow of red ink continues into 1982, during which year the tour division is sold to a new British and Commonwealth Shipping Group subsidiary, British Island Airways, Ltd.
(2), which receives the name of the 1980 merger partner.
To end the slide, the company consults with KLM (Royal Dutch Airlines, N. V.) and appoints British Airtours, Ltd. CEO Stephen Hanscombe managing director in August 1983. The company ends three years of losses with a profit just under ?1 million.
In 1984, certain domestic routes are turned over to Manx Airlines, Ltd. and one F.27 and the F.28 are sold. London (STN) to Guernsey flights begin in the spring while frequencies are increased to Amsterdam, Bergen, Brussels, Copenhagen, Dusseldorf, Esbjerg, Paris, and Stavanger.
An HPR-7 Herald 203 is struck by a truck at Bournemouth’s Hurn Airport on June 11 and damaged beyond repair.
The original F.28-1000 is leased in November from Fokker for a year. Enplanements reach 202,808 and a ?2-million profit is generated.
In 1985, operating primarily from 15 provincial U. K. centers, the airline continues to service its routes with a fleet that includes 16 Fokker F.27s, 1 Shorts 330, and 2 BAC 1-11-400s, the latter leased from British Island Airways, Ltd. (2). Employment is 1,000 and boardings skyrocket to 950,000. The profit reaches ?2.6 million or roughly $4 million.
Managing Director Hanscombe’s fleet is altered in 1986 as 3 Fokkers and the Shorts 330 is replaced by 4 Shorts 360s. A new office is opened at Norwich Airport with D. L. Henry as operations manager. A total of 50 international roundtrip flights are operated weekly from Stansted to Amsterdam, Paris, and Brussels. On December 1, Air U. K., Ltd. places the first British-registered F.27-500 in service on the London (LHR)-Guernsey route. Enplanements fall to 850,000.
Airline employment grows 2.6% in 1987 to 975 and the fleet includes 15 F.27s, 5 Shorts 360s, and 2 BAC 1-11s-400s. The first British airline to introduce a no-smoking rule, Air U. K., in a four-month experiment beginning on May 1, bans smoking on services from London to Exeter, Southampton, and the Channel Islands.
In June, the company is reorganized; KLM (Royal Dutch Airlines,
N. V.) purchases 14.9% shareholding (and receives two board seats) in what has now become, after itself, the second largest operator at Amsterdam’s Schiphol Airport. It is allowed to appoint one board director. The arrangement allows an experimental code-sharing arrangement on one London to Amsterdam service. An autonomous sister charter carrier, Air U. K. Leisure, Ltd., is formed the same month.
The new holding company, Air U. K. Group, operates both airlines as subsidiaries under the chairmanship of C. J. Parker. The first of three ordered British Aerospace BAe 146-200s enters service in November from London (LHR) to Guernsey, introducing the carrier’s new livery. The million mark in passenger boardings (1,000,000) is reached.
In 1988 the employee population is reduced by 2.6% to 950 and 2 more BAe 146-200 are acquired, allowing retirement of the BAC 1-11400s. A new office is opened at London (STN) and in September orders are placed for 3 BAe 146-300s. For the nine months in which figures are given, customer bookings rise 32.2% to 986,860. In September, the company is able to assume the London (LGW) to Edinburgh and Glasgow services formerly operated by British Airways, Ltd. (2). The year’s profits are $1.3 million (operating) and $1 million (net).
The payroll grows by 17.5% in 1989 to 1,340 as a Fokker F.27-600 is added. In January, an interline agreement is signed with Virgin Atlantic Airways, Ltd. Air U. K., Ltd. becomes the first European operator to fly the type when its first BAe 146-300 is delivered on February 28; it is employed on March 2 to initiate service from London (STN) to Brussels. Although full code-sharing is not implemented, interlining is made possible through bookings on the KLM (Royal Dutch Airlines, N. V.) computerized reservations system.
Following receipt of the second BAe 146-300, the company places it into service on routes from London (LGW) to Edinburgh and Glasgow. British and Commonwealth sells its stake in British Air Transport Holdings to Caledonia Investments and Yattendon Investment Trust, Ltd., both of which receive 45% interest.
Full-year traffic statistics reveal that customer bookings are up 34% to 1,810,000 and revenues have risen 36.1% to $217 million. Operating income moves ahead to $4.4 million and net gain totals $3.2 million.
Company employment is increased by 34.3% in 1990 to 1,800. In February, the subsidiary firm, Air UK Engineering, Ltd., occupies a new 30,000-sq.-ft. hangar at Norwich Airport. Six additional BAe-146-300s begin delivery, replacing two Shorts 360s and an F.27-100. In May, one of these, before entering commercial services, visits Eastern Europe and the Soviet Union.
Beginning in late June, the company contracts with Virgin Atlantic Airways, Ltd. to provide discount airfares throughout the U. K. for Virgin’s transatlantic passengers.
While landing at Schiphol Airport at Amsterdam after a flight from London (STN) on July 19, it is discovered that the right hand main landing gear of Flight 872, an F.27-200 with 4 crew and 17 passengers, has not locked down. A forced landing is made with the right gear retracted and, although the aircraft is badly damaged, there are no fatalities.
Managing Director Robert Frost resigns, also in July, for personal reasons; his duties are assumed by group Managing Director Hanscombe. Enplanements during the 12 months total 2,235,578.
Andrew Gray becomes managing director in 1991. The fleet now comprises 1 owned and 1 leased BAe 146-100, 5 owned BAe 146-200s, and 1 chartered and 5 owned BAe 146-300s, plus 10 F.27-200s, 2 F.27-500s, 1 each F.27-100 and F.27-600, and 2 Shorts 360s.
Destinations visited include Aberdeen, Belfast, Glasgow, Guernsey, Jersey, Edinburgh, Humberside, Newcastle, Leeds/Bradford, Teesside, Norwich, and Southampton, and Amsterdam.
Scheduled service from the new ?400,000 terminal at Stansted Airport to Nice and Florence begins on March 15, followed in May by twice-daily flights to Frankfurt and Dusseldorf. Passenger boardings for the year as a whole are down 1.3% to 2,206,889.
In 1992, 2 BAe 146s are withdrawn and replaced by 5 chartered Fokker 100s, the first of which is delivered in late June and enters service in August. In celebration, a new livery is introduced. New services or frequencies are introduced to Aberdeen, Amsterdam, Dusseldorf, Brussels, Frankfurt, Nice, Florence, and Paris.
The airline joins the KLM frequent flyer program and passengers interlining through Amsterdam’s Schiphol Airport receive boarding cards for both Air U. K. and KLM flights on departure. In October, the “Spokes from Speke” program is revised and becomes known as Royal Mail Skynet.
Customer bookings recover and grow by 8.6% to 2,397,300.
In 1993, Chairman Hanscombe and Managing Director Gray oversee a workforce of 1,200. Four more leased Fokker 100s are delivered, along with the first of 8 chartered Fokker 50s. With 325 weekly flights at Amsterdam Schiphol, Air U. K. is now the largest foreign user and allows that facility to boast that it is “London’s third airport.”
A marketing agreement is signed with Northwest Airlines and traffic on the routes to the Dutch airport from London (STN) and Newcastle increase by 17% and 21%, respectively. In December, orders are placed for 8 Fokker 50s, plus 8 options, as well as 3 leased F.27-500s.
Overall scheduled departures total 63,636, passenger boardings swell 6.6% to 2,557,680, and there are profits: $5.04 million (operating) and $5.13 million (net).
Airline employment is increased by 14.6% in 1994 to 1,482 and, in January-February, scheduled services are inaugurated from London (STN) to Munich and Copenhagen. The arrival of the first of the additional Fokker 50s in March allows retirement of a number of older F.27s and their replacement with leased F.27-500s.
During May, a multimillion-pound contract is received from KLM (Royal Dutch Airlines, N. V.) for the line maintenance of the Netherlands carrier’s 6 Fokker 100s. Belfast becomes a destination on June 13.
On September 1, daily flights are initiated from Stansted to Linate Airport at Milan, Italy. Two BAe 146-300s are leased in October-November. One replaces a BAe 146-200 and the other is placed on a route from Manchester to Amsterdam that the company takes over from KLM (Royal Dutch Airlines, N. V.). In December, after just over three year’s service from London (STN), the airline boards its one-millionth passenger. During the 12 months, scheduled departures increase to 68,557.
Customer bookings leap upward 13.9% on the year to 2,914,239 and revenues increase by 14.6% to $421.63 million. With operating expenses rising only 12.5% to $412.49 million, the company is able to post an operating profit of $9.14 million and a net gain of $15.1 million.
The workforce grows a slight 1.8% in 1995 to 1,509 as 4 B-737-42Cs and 3 B-737-4Y0s arrive under charter. The B-737-42Cs are soon subleased out to KLM (Royal Dutch Airlines, N. V.) and the B-737-4Y0s to Modiluft, Ltd. Two new BAe 146-300s are placed into service, one as replacement for a BAe 146-200.
Early in the year, the company takes over the Amsterdam-Manchester route previously flown by KLM (Royal Dutch Airlines, N. V.). Replacement service is provided with one of the new BAe 146-300s. Other new routes are opened to Hamburg, Zurich, and Madrid.
The KLM interest in the airline climbs to 45% as new cooperative agreements are discussed. The company enters into a code-sharing, blocked-seat agreement with Jersey European Airways, Ltd. and employs its BAes in support of its new partner over a route from Belfast to Amsterdam.
Scheduled departures total 73,574 and passenger boardings ascend 15.7% to 3,370,776.
Airline employment grows a dramatic 19.9% in 1996 to 1,810 and the mostly leased fleet now includes 4 B-737-42Cs, which are leased out to KLM (Royal Dutch Airlines, N. V.), 11 BAe 146-300s, 1 146-100, 4 F.27-200s, 5 F.27-500s, 9 Fokker 50s, and 9 Fokker 100s. The “Baby Boeings” subleased to Modiluft, Ltd. are returned.
Scheduled roundtrips begin to Rotterdam from London (LCY and STN). A code-sharing agreement with Eurowings Luftverkehrs, A. G. begins during the spring, as does a weekday-only partnership flight with Deutsche Lufthansa, A. G. from London to Cologne and Bonn.
On May 1, the carrier’s 60% stake in Air U. K. Leisure, Ltd. is sold to Unijet, which will rename the airline Leisure International, Ltd.
Also on May 1, a new entrant World Airlines, Ltd., launches business-class luxury flights to Amsterdam’s Schiphol Airport from London (LCY) with a single British Aerospace BAe 146-200, leased from USAir. On
July 1, Air U. K inaugurates a new daily roundtrip BAe 146-300 service between London (LCY) and Amsterdam, bringing to 11 the number of daily frequencies between the two destinations. Passengers flock to these less-expensive frequencies, sending the new entrant, World Airline, Ltd., into a fiscal tailspin. Also during the month, the carrier’s frequent flyer program is merged with that of KLM (Royal Dutch Airlines, N. V.).
In August, an agreement is signed with the Dutch flag carrier under which it will swap 4 F.28-4000s to Air U. K. in exchange for the right to purchase the 4 B-737-42Cs it is already leasing.
Air UK now begins service between Inverness and London (STN).
On October 1, the World Airlines, Ltd. BAe 146-200 is impounded at London (LCY) for nonpayment of landing fees. Without flight equipment, World goes into liquidation on October 10. USAir pays the landing fees to regain its BAe and Air U. K., Ltd. honors tickets held by passengers for World. World Airlines now has the distinction of being the first casualty in a fare war that will soon encompass other low-cost carriers, such as easyJet, Ltd., and majors like British Airways, Ltd. (2) and Air U. K.’s partner KLM (Royal Dutch Airlines, N. V.).
Scheduled departures leap to 77,695 and enplanements ascend 6.9% to 3,601,969.
The workforce grows by 10.5% in 1997 to 2,000. Two new routes to KLM’s Amsterdam hub are introduced in early spring, bringing the number of British destinations from which feeder services are offered to 14.
The company and KLM (Royal Dutch Airlines, N. V.) merge their marketing and sales operations on April 1, creating a strong competitor for British Airways, Ltd. (2) in the British air transport market.
During the spring, a code-sharing agreement is signed with the U. K. regional Suckling Airways, Ltd. In mid-July, KLM (Royal Dutch Airlines, N. V.) reaches agreement with the carrier’s owners, British Air Transport Holdings, Ltd., to purchase its 55% majority stake. The Air U. K. takeover, subject to European Commission approval, leaves the company as Dutch-owned, but, at least initially, operationally independent. EC approval is given on September 23.
During the summer, orders are placed for 4 (later 5) Aero International (Regional) ATR72-212As.
While taking off from London (STN) on a scheduled September 30 service to Dublin, a Ryanair, Ltd. B-737-200 comes within 200 ft. vertical and 0.91 nm. horizontal distance from an Air U. K. BAe 146-200 that is descending into London (CTY) after a service from Edinburgh.
The first ATR72-212A is delivered in October and, like the others that will be received through May next, is employed to replace the 4 F.27-200s on existing routes to the Channel Islands.
To provide additional frequencies on existing routes, services from London (STN) to Munich are withdrawn on October 25.
A new return route is opened on October 26 from London (LCY) to Manchester. Fokker 50s fly the route four times a day on weekdays and daily on weekends.
The code-sharing agreement with Deutsche Lufthansa, A. G. is expanded on October 27. The existing weekday route from London (STN) to Cologne and Bonn is extended to Dresden. The twice-daily return service from Aberdeen to Teesside and Humberside ends on November 21.
Just after landing at Gurnsey following a December 7 service from Southampton, the left main landing gear of a Fokker F.27-500 with 4 crew and 49 passengers, collapses. No injuries are reported.
For the year, passenger boardings accelerate 13% to 4,172,087.
In January 1998, to better integrate its feeder operations, KLM (Royal Dutch Airlines, N. V.) renames Air U. K., Ltd. as KLM U. K., Ltd. and Air Exel Commuter, C. V. as KLM Exel, C. V. The combined 72-aircraft fleet, including that from KLM Cityhopper, N. V., is repainted in a new blue and white livery with silver accents.
AIR U. K. LEISURE, LTD. (LEISURE INTERNATIONAL AIRWAYS, LTD.): United Kingdom (1987-1996). Established at London (STN) in June 1987, Air U. K. Leisure, Ltd. is an autonomous sister of Air U. K., Ltd. formed to operate long - and medium-haul charter and inclusive-tour services. The two airlines operate as subsidiaries of Air U. K. Group, a new holding company that holds 60% equity in the holiday carrier.
The aircraft charter and brokerage group Unijet holds a 40% stake and is given an exclusive contract to sell all of Air U. K. Leisure’s charter capacity to British and overseas tour and travel organizers through its Viking International Air Chartering, Ltd. subsidiary.
With advice from KLM (Royal Dutch Airlines, N. V.), Chairman C. J. Parker and Managing Director Jeremy R. Dixon acquire 2 leased Boeing 737-200s and place orders for 4 B-737-42Cs. The new charter operator inaugurates holiday flights to European, Mediterranean, and Canary Island resorts on April 30, 1988 from two London airports (STN and LGW), plus Birmingham, and Manchester. The 4 Dash-42C “Baby Boeings” arrive under charter late in the year. Enplanements for the year’s three remaining quarters total 225,600.
In early 1989, the fleet is altered by the removal of the Dash-200s and their replacement in service by 3 B-737-4Y0s, 2 of which are briefly leased to MAS (Malaysian Airline System, Ltd.). Enplanements total 450,000.
Company employment is increased by 25% in 1990 to 150 and in May Christopher Parker is named chairman. Passenger boardings for the year remain level, revenues total ?54.37 million, and a ?957,016 net profit is generated.
Company employment increases by 66.7% in 1991 to 250 as one of the Malaysian leases ends, leaving the fleet at 3 chartered B-737-42Cs and 3 owned B-737-4Y0s, one of which remains out with MAS. An order is placed for an Airbus Industrie A310-304 and the year’s enplanements advance to 726,883.
The workforce is increased by 9.3% in 1992 to 258 and the Airbus request is withdrawn in January and replaced by an order for a pair of B-767-39HER to be employed by a new enterprise now in prelaunch phase. The leased fleet now includes three B-737-4Y0s and four B-737-42Cs.
Leisure International Airways, Ltd. (LIA) is organized at London (LGW) on February 18 as a new Unijet subsidiary and autonomous sister to expand the number of long-haul charters with the leased B-767-39HERs. Chairman Parker and Managing Director Dixon recruit a workforce of 160 and order a pair of Boeing 767-39HERs on lease from its sister.
Customer bookings jump 30.4% to 1,044,372. Revenues total $102.3 million, but costs are higher. Losses are $2 million (operating) and $232,978 (net).
In 1993, Chairman Parker and Managing Director Dixon oversee a workforce of 271, up 5.9% over the previous year. European, Mediterranean, and Canary Island holiday destinations are visited from Manchester, Birmingham, and London (LGW and STN).
In early March, a B-737-4C2 is wet-leased by South East European Airlines, S. A. and is employed to inaugurate daily feeder service between London (LGW) and Athens on behalf of Virgin Atlantic Airways, Ltd.
Air U. K. (Leisure) is contracted to operate the big Boeing twins assigned to LIA after they arrive in early spring. LIA revenue flights begin from London and Manchester in April to holiday destinations in the Bahamas, Santo Domingo, and St. Martin. Roundtrips from the U. K. to Orlando start on May 1.
Passenger boardings decline 4.3% to 999,678 and, although a $14,000 net profit is posted, there is an operating loss of $130,000.
Airline employment grows to 442 in 1994 and the B-737-4C2 out on lease to South East European Airlines, S. A. is returned in January.
During the spring, the B-767-39HERs begin holiday flights to Barbados, as well as the airports at Holguin and Varadero in Cuba. Customer bookings recover, jumping skyward by 20.4% to 1,145,025. Revenues advance by 13.4% to $123.21 million, but expenses climb 13.9% to $123.86 million. Consequently, there is an operating loss of $656,000. On the plus side, there is a net gain of $125,000.
The workforce is reduced by 14% in 1995, dropping to 380. Passenger boardings move ahead by 5.6% to 1,208,700. Airline employment is cut to 160 in 1996 and in June the 60% stake held by Air U. K., Ltd. is sold to Unijet, which takes the associate company over and operates it as part of their concern. Enplanements at Air U. K. Leisure through June total 666,000.
AIR UKRAINE (AVIALINII UKRANI): Prospekt Pobedi 14, Kiev, 252135, Ukraine; Phone 380 (044) 216-7109; Fax 380 (044) 216-8235; Http://www. airukraine. com; Code 6U; Year Founded 1992. Kiev-based Air Ukraine, a directorate of Aeroflot Soviet Airlines, is reformed into a national carrier in the spring of 1992 to offer international and domestic scheduled and charter services, both passenger and cargo. Leonid V. Pogrebnjak is named general director and his workforce totals, 40,000. The fleet includes 45 Antonov An-24s, 22 An-26s, 10 An-30s, 3 An-32s, 2 Ilyushin Il-18s, 7 Il-62Ms, 3 Il-76s, 17 Tupolev Tu-134s, 27 Tu-154B-1s, 3 Tu-154Ms, 17 Yakovlev Yak 40s, and 14 Yak-42s.
In addition to domestic and regional destinations, the company also schedules visits to Lvov, Prague, Shannon, and New York (JFK). The subsidiary Air Ukraine Cargo is formed to transport freight between the Ukraine and New York.
A Tu-154B-1 is destroyed as the result of a bad landing at Kiev on September 5; there are no fatalities.
In October, the subsidiary Air Ukraine International is formed to take over the company’s long-haul charter services to Western Europe. The domestic subsidiary Kharkov United Air Detachment now flies domestic charters.
Flights continue apace in 1993. On April 15, the Odessa-based Schlepper gang, having received $5,000 per head, contracts with the carrier (also in need of hard currency) to transport a planeload of Asian refugees into Germany. The next day, a Yak-40 arrives at Berlin’s Schoenfeld Airport and deplanes 43 Indians and 6 Pakistanis who immediately demand sanctuary. The Asians are immediately transferred to the asylum center at Eisenhuettenstadt for processing.
On October 27, while taxiing at Tumen-Roshino, the pilot of an L-410UVP with one other crewman and six passengers, takes the wrong turn and enters into a construction area, where the nosegear collapses. There are no injuries reported.
In 1994, the company places an order for three Dornier 328-110s that would become the first Western turboprops to operate in the Ukraine. It also reports its enplanements for the first time; through November, a total of 585,461 passengers are flown.
The Dorniers will not be delivered in 1995, as top management changes when Ilyin Viacheslav becomes president.
Having just departed Agadyr on a delivery flight to Honduras on February 1, a Let 410UVP with two crew and a passenger crashes onto a frozen lake near Provendenia, Russia; although the aircraft is lost, there are no fatalities.
While en route from Petropavlovsk to Pakhachi on April 4, an An-26 with six crew and three passengers makes a refueling stop at Palana. While taking off from this intermediate point, the crew fails to take off the brakes, preventing the plane from becoming airborne. It overruns the runway by 410 m. and is badly damaged. There are no fatalities.
Traffic increases dramatically this year as customer bookings jumps 85.9% to 1,262,478 and freight skyrockets 171.1% to 47.69 million FTKs.
In 1996 there is a 40,000-member workforce and a fleet of 199 aircraft. Plans are made to acquire additional Western aircraft to replace some of the Soviet equipment now being operated.
Destinations visited include Baku, Beijing, Bratislava, Budapest, Cairo, Damascus, Delhi, Istanbul, Kiev, Khabarovsk, Lvov, Moscow, Murmansk, New York (JFK), Novosibirk, Prague, Sharjah, Sofia, Tashkent, Tbilisi, Tunis, Tyumen, Vilnius, and Warsaw.
Enplanements turn downward this year, falling 9.9% to 1,137,263. A total of 44.2 million FTKs are operated, a 7.3% drop.
The three Dornier 328-110s are finally delivered during the spring of 1997. They enter service from Borispol Airport at Kiev to Charki’v, Donets’k, Dnipopetrovsk, Lvov, Odessa, and Simferopol.
Weekly Ilyushin I1-62M return service from Lvov to New York (JFK) via Kiev begins on May 14. Twice-weekly nonstops are offered between Kiev and New York on Fridays and Sundays and from Toronto to Lvov, with continuing service to Kiev, on Saturdays.
In a further effort to improve services, the company forges interline agreements with Delta Air Lines, Continental Airlines, and Pan American World Airways (2). In an exclusive arrangement, Delta provides Air Ukraine passengers with continuing service out of New York to all of its domestic destinations while Pan Am offers reduced fares to all AU passengers whose final destinations are Los Angeles, San Francisco, or Miami.
During the summer, the company undertakes the process of privatization, under which the government share will be reduced to 51%. A tender is also placed out for long-range Western aircraft.
Twice-weekly An-24 joint venture Flights with Air Moldova International, S. A. commence in October between Chisinau and Simferopol.
On December 17, a Yak-42 with 70 passengers crashes while coming around for a second approach to the airport at Salonika, Greece; there are no survivors.
For the year as a whole, customer bookings fall 25.2% to 851,240 and freight plunges 51% to 21.7 million FTKs.
Flights continue in 1998. During the spring, the government announces plans to privatize the airline. Air Ukraine is scheduled for conversion into a joint stock company during July. A financial rather than a strategic investor is sought for the carrier and, as the government expects to retain 51% majority shareholding, analysts predict that the prospect of locating a Western investor is not good.
Passenger boardings plunge 51.7% to 388,000, even as cargo traffic climbs 19.4% to 23.68 million FTKs.
Airline employment stands at 9,500 at the beginning of 1999. The huge fleet now includes 34 An-24s, 8 An-30s, 4 each Il-76Ms and An-32s, 7 each Tu-134As and Il-62Ms, 9 Let L-410, 16 Tu-154Bs, 2 Tu-154Ms, and 1 each An-26, Dassault Falcon 20, PZL-Mielec An-28, Tu-154A, and Yak-40.
A cooperative agreement is signed with Uzbekistan Airways on June 17 covering shared routes and services.
The Moscow media reports on October 7 that, having found much of its fleet largely redundant given current levels of business, the airline is placing a number of aircraft up for sale.
Enplanements total 149,000 and 5,257,000 FTKs are operated.
By the spring of 2000, Air Ukraine has run up a $2-million debt to Eurocontrol for the use of airspace. On May 28, in response to a Eurocontrol request, British authorities at London seize one of the company’s Tu-154Bs, which had arrived on a charter. When Air Ukraine President Vadim Sorokyn indicates that the jetliner will be left in England to settle the debt, the Ukrainian Transport Ministry objects and demands that it be returned.
The carrier’s fiscal problems continue and, on August 15, it is reported that its accounts have been seized to settle its tax debts.
Following several months of negotiations, a payment schedule is worked out and, on August 29, the plane held in England is freed to depart.
When the carrier is forced to drop its service between Kiev and Vilnius on September 11, frequencies on the route are increased on September 28 by Lithuanian Airlines, A. B. (Lietuvos Avialinijos).
World History
