May 2013

New Rules for Granting Rights to Operate Air Routes

On 31 May 2013 the Order of the Ministry of Infrastructure (the "Ministry") No. 245 "On Approval of the Procedure for Granting and Annulling the Rights to Operate Air Routes" (the "Procedure") came into effect. The new Order repeals Order No. 247 of 24 December 2004 which regulated these matters in the past.

While under previous rules the right to operate an air route was evidenced by an annex to the Passenger and Cargo Air Transportation License, the Procedure introduces a separate document to attest air carrier's right to operate each single route.

The procedure provides for the establishment of a commission for defining and implementing the state air routes policy (the "Commission"). The Commission is tasked with considering the matters related to granting and withdrawal of air route permits. The Commission is to include representatives of the Ministry and the State Aviation Service who are to be appointed by the Ministry's order.

To operate an air route, an air carrier must submit to the ̀inistry an application form approved by the Procedure enclosing:

  • copies of the license and aircraft operator's certificate;
  • information on the air fleet which will operate on the route;
  • copies of the certificates of airworthiness of the fleet;
  • copies of the insurance policies for the mandatory aviation liability insurance with respect to passengers, luggage, mail, cargoes and third persons, insurance of crew members and other airline personnel;
  • aviation security program;
  • copies of balance sheets and financial results reports for the last three years;
  • information on the payments to the State Fund for Financing of the Nationwide Aviation Spending and Participation of Ukraine in International Aviation Organizations.

A company seeking to operate a scheduled international air route must also submit a three-year business plan.

When granting the right to operate an air route, the Commission may lay down special conditions, for example air carriers may be required to operate certain socially important air routes if granted with the right to fly on profitable routes.

The Commission must consider the application and take a decision within 30 calendar days. The decisions are adopted by open voting by the majority of the Commission members present at the meeting. Representatives of air carriers and other interested parties can be present at the meeting.

The Procedure expands the list of conditions which may serve as grounds for withdrawal of the right to operate a route. The list includes, inter alia:

  • establishment of control relations between the air carriers holding the rights to operate the same air route;
  • failure of the air carrier to operate the air route for 12 months.

It is to be hoped that the new Procedure will more efficiently regulate the process of granting the rights to operate air routes, is aimed at increasing the volume of air traffic, and will serve to help increase the levels of competition on the aviation market and transparency of the air route designation process.

For further information please contact partner Vadym Samoilenko,
senior associate Oles Kvyat and associate Anna Vlasiuk

© Asters 2013
Web-site  |  Contacts