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Dominic Jones speaks to Richard Creagh about UIA's ownership structure and aircraft needs
Ukraine International Airlines (UIA), Ukraine's second-largest carrier, is planning to raise additional capital following a comprehensive new business plan later this year. The new business plan will be hammered out to reflect changes in the airline's operating environment and strategy.
Richard Creagh, deputy president of UIA, tells Airfinance Journal that the carrier will negotiate with shareholders to increase private shareholding in the airline. At present, the State Property Fund of the Ukraine owns 68% of the carrier, the SAir Group/Austrian Airlines partnership owns 18%, while GPA, the Irish operating lessor, owns about 13%.
"The goal is to have the shareholding reduced to 50% within the next year," says Creagh, "partly by attracting emerging markets investment funds targeted specifically at the region.
"The transfer of the government stake in the airline to the State Property Fund [a privatization body] has made those goals more achievable," he says. "We want then to reduce the government stake beyond that through more Ukrainian-sourced investment, probably with a staff shareholding in the airline in the not too distant future." UIA's total share capital is valued at $49 million.
UIA says...