UkraineInternational Airlines received a message from Mission of Ukraine to the EuropeanUnion with regard to Swissport letter to European Commission President. Onceagain Swissport attempts to decide the controversy of two business entities byexerting pressure on the judicial system of Ukraine, governmental anddiplomatic authorities of Ukraine and the EU.

Per H. Utnegaard, Swissport International Ltd(Swissport) President and CEO, letter dated September 12, 2013 and addressed toMr. Jose Manuel Barroso, European Commission President, once again contains deliberately misleading information aimed tomisinform this reputable body and to exert pressure on Ukrainian governmentaland judicial authorities via the EU. UIA perceives Swissport actions as continued andpersistent attempts to lobby theinterests of the private company by engaging the government, the press, thepublic, and the EU management to in order to obtain illegal judgment in thecompany`s favor. Swissport cassation appeal is currently pending in theSuperior Economic Court of Ukraine. The next hearing is scheduled on October 2,2013. The cassation appeal case is not sealed yet. Although the company doesnot have any legalistic reasons for the court, Swissport management states “therestill is a possibility that, given enough pressure from the EU, the decisioncould be reversed” persistently and openly!

Simultaneously, Swissport letter addressed toEuropean Commission President once again disseminates myths about “disposal ofmajor investment”, “investor`s share dilution”, “putting the safe and reliableoperation of flights between the EU and Ukraine in question”, etc. Despite thefact UIA has already made comprehensive comments on this defamation, theAirline is forced to once again lay emphasis on the following issues.

It was lack of investment that resulted in the handling services quality dramaticdecline at Kiev Boryspil International airport early in the high season.Amounting approximately to 24000 UAH (3 thousand USD) Swissport shareholder feerate did not allow the company to operate efficiently.Swissport Ukraine business strategy deficiency at thetime when Swissport owned 70% of its interest led to grave consequencessince Swissport Ukraine did not have enough technical and human resources toprovide the rapidly increasing number of UIA passengers with quality handlingservices. To meet the existing challenge UIA invested 7993000UAH (nearly 1 million USD) in INTERAVIA in July 2013 (as soon as the court`sruling in UIA favor became effective). The latter allowed purchasing equipmentneeded for UIA passenger handling and aircraft maintenance. Currently durableequipment is being purchased – UIA even issued additional warrants formachinery acquisition. Early September 2013 INTERAVIA staff amounted to 1.150persons outnumbering analogous figures of September 2012 by 60%. Thus, newworkplaces with respectable wages were created.

Allegationsagainst UIA of “diluting” Swissport interest in the companies` joint ventureare also ungrounded. According to the court ruling adopted March 27, 2013, 100%of Swissport Ukraineshare (hereinafter INTERAVIA) became UIA property. Thus, SwissportnolongerholdsinterestinINTERAVIA.

UIA once again emphasizes that any disputable issues should be dealtwith inside the legal environment only, without employing any administrativeand political pressure methods.

Herewith, UIA hopes that Ukraine`s governmental bodies will rebuff attemptsof exerting pressure on them since insinuations about selective justice, that SwissportInternational Ltd actively disseminates, undermineour country`s creditability, decrease its investment appeal, and are trulycapable of harming Ukraine`s national interests.

UkraineInternational Airlines are convinced that the values of civil society andgovernment and business partnership manifested by European community will notallow engaging European Commission management into purely economic dispute oftwo private actors.

Ukraine International Airlines Press Office:

Tel/fax: (044) 238 26 97,

E-mail: press.service@ps.kiev.ua

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