Ukraine International Airlines

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Ukraine International Airlines

• Doing Business in Ukraine
• Dublin
• 13th June 2005
• Richard W. Creagh

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Doing Business in Ukraine

• UKRAINE IS NOT RUSSIA!!!

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Doing Business in Ukraine

• Ukraine
• Strategic location
• Huge territory (bigger that France)
• Fast growing economy
• Significant market (population over 48 million)
• Low labour cost
• Exciting business opportunities

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Ukraine International Airlines

• Created 1992
• One of first companies with foreign investment
• GPA Group provided start up and development
  funding
• Commenced operations using two new Boeing 737-400
  aircraft
• Training to highest international standards
• Note Subsequently AerFi Group and now debis
  AirFinance (Ireland)

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Doing Business in Ukraine
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Doing Business in Ukraine

• Money is indeed the most important thing in the
  world and all sound and successful personal and
  national morality should have this fact for its
  basis
• George Bernard Shaw

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Doing Business in Ukraine

• Requirements for funding
• Good track record
• Audited accounts (IAS)
• Credible Business Plan
• Return on investment
• Confidence in Management

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Funding

• GPA Group USD6.5m - at start up
• State Property Fund of Ukraine infrastructure
  (USD33.5m) at start up
• Net profit in 1995
• Austrian Airlines and Swissair USD 9 million
  (1996). - Strategic partnerships
• EBRD - USD5.4 million (2000). - The most
  important investor in Ukraine.
• New equity (USD 12.6 million) planned for 2005

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Business with Ireland

• Equity
• Aircraft/leases
• Consultancy
• Training
• Engine lease/overhaul
• Aircraft maintenance
• In-flight/duty free services
• Increasing business opportunities

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Doing Business in Ukraine

• Major Problem
• NO DOUBLE TAX TREATY
• Priority for action!

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Doing Business in Ukraine

• Economy
• Strong growth GDP 6 p.a.
• Budget surplus
• Positive trade balance
• Stable currency
• Low labour costs

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Doing Business in Ukraine

• Business environment
• Positive Negative
• high education standards - lack of personal
  responsibility
• good work ethic - bureaucracy
• Easy-going and - slow change of
• pleasant people post-Soviet mentality

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Doing Business in Ukraine

• Political environment/
• positive changes
• Access for EU-citizens without a visa
• Government-business community communication
• Declared objective of becoming EU member
• Parliamentary elections March 2006

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Doing Business in Ukraine

• Summary
• Great business potential
• Environment improving
• Aviation and tourism opportunities
• Ireland needs to be pro-active
• - double tax treaty
• - Embassy
• - investment

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Ukraine International Airlines

• www.flyUIA.com
• The best way to travel to Ukraine!