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Aerosvit Airlines Files For Bankruptcy May Suspend Operations
By Steve Hall
January 4, 2013 - AeroSvit Airlines has filed a petition with the Kyiv Regional Commercial Court to initiate bankruptcy proceedings for the purpose of commencing reorganization procedure, restoring solvency and ensuring fulfillment of commitments to its creditors in full.

AeroSvit Airlines, operating as AeroSvit Ukrainian Airlines and АероСвіт, is one of the Ukrainian flag carriers. Its head office is on the grounds of Boryspil International Airport in Boryspil, Kiev Oblast, Ukraine.

AeroSvit operates currently the largest network (among other Ukrainian carriers) of scheduled international flights.
Performing scheduled domestic and international services directly or by code share to over 72 destinations including long-haul international services to China, India, Thailand, Canada, USA, Sri Lanka and Vietnam, as well as charter services. Its main base is Boryspil International Airport, Kiev. 

On December 29th, 2012, Kyiv Regional Commercial Court decreed to commence bankruptcy proceedings regarding Private Joint-Stock Company "AeroSvit Airlines". However, as of today the airline is not bankrupt, as AeroSvit Airlines has not suspended its operations and will continue to fulfill its current commitments to its contractors. 

The airline's management remains unchanged and keeps functioning, with all procedures assuring normal operational activities, including flight safety assurance, being carried out in full extent. Planned company's reorganization forms part of the change program initiated by the airline in order to restore its operating efficiency and increase revenue inflows. 

Back in the first week of December the carrier began gradually restoring payments according to the schedule agreed with operators of provided services. In particular, on Wednesday, December 5, the airline paid off most obligations for air navigation services in Russian Federation airspace, made regular payments for services in several airports.  


"AeroSvit" continues negotiations with "Sheremetyevo" airport to restructure the debt taking into account its main body acquittance. In this context, "AeroSvit" reaffirms its intention to continue performing flights to this Moscow airport. The company is ready to support with its traffic the leading positions of "Sheremetyevo" among European airports in terms of passenger traffic increase (ACI EUROPE rating data for the category of airports with passenger traffic 10 to 25 million per year). 

Previously, due to capital entry delay on "AeroSvit" account in the season of low demand, payment schedule for air navigation facilities and services in several airports was disrupted. For this reason, recently several flights were delayed. "AeroSvit" intends to compensate the traditional decline of profitability in winter navigation in airline industry by increasing the efficiency of operation activity. The company has deepened cooperation with partner carriers by increasing geography of joint passenger delivery, stimulating the creation of new passenger flows and increasing flights capacity. 

Simultaneously "AeroSvit" launched a program aimed at reducing costs on passenger handling, ramp handling and other services. In particular, contracts renegotiation with service operators in several airports is in process, passenger and aircraft ground handling at "Boryspil" airport is preparing to be transferred to outsourcing. "AeroSvit" management is also preparing a major restructuring plan and will soon submit it to the company's shareholders.

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