According to UkraineInternational Airlines sources, today the regular hearing concerning UIA andSwissport corporate dispute was held in the Superior Economic Court of Ukraine.The Court partially granted SwissportInternational Ltd cassation appeal – the Kiev CommercialCourt ruling adopted on October 26, 2012, and the decision of Kiev CommercialCourt of Appeal adopted on March 27, 2013 in UIA favor were reversed while the case wasrecommitted to the first-instance court.

Swissportrepeatedly appealed to governmental bodies of Ukraine and the governingstructures of the EU, wrongly accusing UIA of attempting to dilute Swissportshare in INTERAVIA handling provider statutory asset. Herewith, Swissportignored thefact that any disputable issues of business entities should be dealt within thelegal environment and only through the judicial institutions of Ukraine which,according to the Constitution of Ukraine, represent a separate branch of thegovernment.

Swissport claimed consistentlythe Ukraine`s judicial system to be corrupted, inefficient, and unable toprotect foreign investments and often associated with raider attacks onbusiness structures. UIA warned against making efforts to decide the corporatedispute of two private entities by addressing political institutions that arenot related to the administration of justice in Ukraine.

UkraineInternational Airlines received a message from Mission of Ukraine to the EuropeanUnion informing that on October 2, 2013, when the next UIA and Swissport courthearing was also scheduled, the EUCommissioner for Commerce, Mr. Karel De Gucht was supposed to pay an official visit to highauthorities of Ukraine and Swissport's letter as of September 12, 2013 sent toMr. Jose Manuel Barroso, European Commission President, can be discussed. UIAbelieves that as a consequence the current high level visit might result inpostponing of the EU-Ukraine negotiations on Common Aviation Area Agreement ifthe court decision concerning UIA and Swissport dispute is not adopted.

Given the inadmissibility of engagingpolitical resources of the European Union to resolve a commercial dispute andaiming at leveling prejudice of the court of the appeal, UIA representatives addressedthe Supreme Economic Court of Ukraine to postpone the case consideration until Mr.Karel De Gucht, EU Commissioner for Commerce, official visit to Ukraine is overand negotiations concerning CommonAviation Area Agreement are completed.UIA representatives also addressed the court to issue decree on challenging theSupreme Economic Court of Ukraine judges` board that was to consider the case.

Both UIA requests were denied.For this reason the Airline`s representatives refused to participate in thehearing that could not be impartial because of critical political leverage.

Swissport’s lobby in the EUturned out to affect strategic relationship of Ukraine and the European Union. Despitethe precedent set as a result of political leverage on Ukrainian legal proceedingsby Swissport, UIA is ready to protect its interests at the Ukraine`s court andhas solid evidential basis to do so. In the meantime INTERAVIA – the subject ofSwissport business interests – continues its daily operations and services tocustomers.