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Ministry of infrastructure of Ukraine Ukrainian State Air Traffic Services EnterpriseSafety. Efficiency. Responsibility |
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| News |
| 1st March 2021 |
| In the face of a pandemic and critical reduction of revenues: ensuring stable operation and safety |
The sharp decline in air traffic in 2020 associated with the unprecedented global aviation crisis caused by the pandemic, and quarantine restrictions imposed by many governments including the complete cessation of flights and border closures (with air traffic dropping to 95 - 98% in peak) led to a critical falling of revenues from air navigation services - by 67% compared to 2019.
The negative financial result of UkSATSE amounting to UAH 1.04 billion for the three quarters of 2020 has a number of objective economic reasons, such as the decrease of UkSATSE income caused by the reduction of flights over the country and the decrease in the average aircraft take-off weight, which is one of the important factors for calculating air navigation charges. It is also because of the recurring nature of the majority of expenditure items (that any other ANSP in the world has) which do not depend on the volume of services provided. Regardless of the number of aircraft in a given airspace sector, all communication, navigation and surveillance facilities operate at all times and air traffic controllers and engineers are present at workplaces 24/7 to ensure that safety functions are performed.
In order to temporarily cut costs, UkSATSE has taken unprecedented measures which include reducing personnel costs by imposing downtime and part-time work, suspending all social programmes, temporary suspending the investment and development programme, reviewing and reducing all operational cost categories to the minimum possible level leaving only those necessary to ensure the smooth operation of the Ukrainian air navigation system.
This enabled us to achieve the impossible in 2020, namely a 39% cost reduction of planned targets and 37% of the previous year’s actuals (excluding exchange rate differences and doubtful debts allowance).
However, the savings achieved do not cover an abrupt 67% drop in revenues, whereas the ANSP operation requires uninterrupted work.
In record time, UkSATSE raised a loan from the EBRD, the first loan granted in Ukraine under the liquidity support programme, to stabilise its financial position. The financial assistance was provided for a period of 3 years at an effective commercial rate that no other Ukrainian bank could offer, and without any property security for the financial resources provided.
However, the successful completion of the technical integration of Ukraine into the EUROCONTROL Common Route Charges System was a condition for the use of the second half of EBRD loan in 2021. This objective has been successfully achieved, not least thanks to the efforts made by UkSATSE, which has ensured the financial stability of the enterprise and Ukrainian air navigation system for 2021.
UkSATSE continues providing an appropriate level of safety in the Ukrainian airspace. As a result, all domestic and foreign airlines were and are able to perform flights, while passengers may rest assured that none of their flights are cancelled or delayed due to specific aspects of UkSATSE activity as the national ANSP.
UkSATSE remains a reliable partner for airspace users. As a state-owned enterprise, it has set an example of how to act in the most challenging environments.
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| Source: UkSATSE |
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Airport, Boryspil, Kyiv region, Ukraine, 08300, phone: (+38044) 235-21-10, fax: (+38044) 281-84-84
© 2005-2024 Uksatse |
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