UIA has always been open and remains open to negotiations with Swissport on certain conditions

Ukraine International Airlines, Kyiv, Ukraine,

Wednesday, October 9, 2013

UIAhas always been and remains open to negotiations with Swissport to resolvedisputes in a legal manner and in compliance with the standards of businessethics accepted on any civilized market environment. Constructive dialogue ispossible in the case Swissport makes apologies for slanderous statements andrebuts groundless charges filed against UIA and its shareholders, which havebeen - and still are – disseminated in the press throughout the courtproceedings between the former partners.

UIAconsiders it necessary to stress once again that throughout this corporateconflict it has always employed legitimate methods to protect its interests incourt and sought to deal with disputed issues within the legal environment only.UIA has never resorted to ex delicto methods and did not try to engagegovernmental and diplomatic bodies of various countries as well as lobbyistsinto the economic dispute between two private entities.

UIAactions have always been systematic and transparent to its partner and SwissportUkraine subsidiary (hereinafter – INTERAVIA), taken in compliance with theshareholders' agreement, the statutory documents, and, surely, the interests ofthe subsidiary.

However,the other party in the dispute – Swissport – continues with its attempts to decide the controversy of the twobusiness entities by engaging the governmental authorities of Ukraineand the EU, which, according to the law, must not interfere with the judiciaryif not a litigator in the process. Swissport’s press release disseminated onOctober 3, 2013, provides solid evidence of the company`s intentions. Moreover,Swissport representatives` public statements citing the fact that well-informedsources within Ukrainian judicial bodies have provided the company withconfidential information have forced UIA lawyers to turn to public prosecutionsdepartment and to file a fact-finding inquiry since these facts bear the marksof corruption.

TheEuropean Union leaders outlined their position on the issue in their responseto Swissport’s letter asking them to intervene in the dispute and to protect Swissport’sproperty interests in Swissport Ukraine by exerting leverage on the governmentof Ukraine. The European Commission`s position can be summarized by saying thatthis reputable international organization does not intend to intervene in aneconomic dispute between two private companies. Nevertheless, Swissport continueswith the attempts to affect diplomatic relations between Ukraine and theEuropean Union by threatening to scuttle the already reached agreements onUkraine`s associated membership in the EU and Single European Sky.

Thefacts mentioned above clearly demonstrate that all Swissport statements on thecompany`s readiness to resolve the conflict with UIA at the negotiating table arenot credible. The trial is in progress. UIA considers Swissport’s appeals tothe Anti-raider Commission (actually, direct reference to how the Commissionmust act to protect Swissport’s interests) as well as other attempts to exertpolitical and administrative leverage on the court to be unethical and to bearthe marks of a delict. UIA repeatedly outlined its position in respect to Swissport’sunlawful actions and remains consistent that under conditions of intensiveleverage the courts of Ukraine are being denied the opportunity to impartiallyhear the case. In turn, Swissport’s behavior can`t be considered consistent.The company`s press release dated October 3, 2013, welcomes the ruling of theUkrainian court which the company filed charges against for being prejudicedand bribable just a few days before expressing the position in the company`spublic statements and a letter to the European Commission.

UIAonce again emphasizes that the Airline is confident in the justness of itsposition and has solidevidential basisto confirm the legitimacy of its claims. UIA’s rightness in this dispute hasalso been confirmed by an independent experts` report.

RegardingINTERAVIA operations, UIA claims that its subsidiary operates sustainably and continuouslyand litigation will not affect INTERAVIA’s operations in the slightest. UIA hasacted and will continue to act in the best interest of its subsidiary.

For information:

October2, 2013 the Superior Economic Court of Ukraine reversedprevious court rulings and recommitted the Swissport International and UIA caseto the first-instance court.

Accordingto Article 122 of the Civil Procedural Code of Ukraine conversion (.i.e. thepreviously exempted property redelivery to the debtor) is possible only in casethe Superior Economic Court of Ukraine reverses rulings of the previous courtinstances AND TERMINATES THE PROCEEDINGS IN CASE/ DISMISSES THE SUIT/ LEAVESTHE SUIT WITHOUT CONSIDERATION.

Giventhat the Superior Economic Court of Ukraine reversedprevious court rulings AND recommitted the case to the first-instance court there are no reasonsto redeliver INTERAVIA property back to Swissport International.

INTERAVIAwill continue operating in the current mode under command of the currentshareholders, Swissport International not being one of them.

Ukraine International Airlines Press Office:

Tel/fax: (044) 238 26 97,

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