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 Ryanair talks on financial issues had been doomed when rate was fixed at $7.5, - Boryspil

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The demands of low-cost airline Ryanair, which planned to start operating in Ukraine, could not be met in full.

As reported by Censor.NET, this was announced by the State Enterprise International Airport Boryspil's press service.

"At the beginning of the negotiation process with Ryanair airline, airport Boryspil voiced numerous warnings about impossibility of meeting their financial expectations in full because of the specifics of the Ukrainian legislation and the conflict of the model of the low-cost airport and a hub airport, like Boryspil. Our side has expressed a number of constructive proposals and taken steps towards Ryanair airline to make possible the European low-cost airline's entry in the central airport of the country," press office said.

Read more: Infrastructure Minister Omelian says he will propose Cabinet to dismiss Boryspil airport manager Riabikin

According to Boryspil, to meet the requirements of Ryanair, it reduced the rate of passenger tax from $17 to $13 for all airlines, "which for us means an income deficiency of $360 million annually." "The rate of this tax is set by an order of the Ministry of Infrastructure. Without this change, Ryanair could not expect receiving $7.5 per passenger," the statement said.

"We have repeatedly expressed the stance that the airport agrees to co-invest in the new direction by providing 80% discount only in case of a guarantee from the airline to increase passenger flow in this direction and increase the geography of flights," Boryspil says.

"Negotiations between Ryanair and Boryspil on financial matters had been doomed since the fixation of the rate at $7.5, which is reflected in the memorandum between the Ministry of Infrastructure and the airline management. This rate was not agreed upon with the business entity, Boryspil airport, in terms of economic feasibility, validity and non-discrimination of other contractors of the airport," the state-owned company said.

Read more: Ryanair announced cancellation of planned entry into Ukraine

"We officially announce that the conditions of the stimulating program of the Boryspil airport are open, public, transparent and available to all airlines interested in flights from Boryspil," the statement said.

"Boryspil airport is ready for any audit of the negotiation process with Ryanair airline in terms of economic expediency. Besides, the airport director publicly announces his readiness to be held liable for all decisions made during the negotiation process with the airline company, and calls for the transfer of further negotiations in the economy, not political discourse," Boryspil said.

On June 10, low-cost air carrier Ryanair announced cancellation of its plans to enter Ukraine.
 
 
 
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