The United States (US) and Ukraine signed an Open Skies Agreement today, July 14, 2015, that is expected to increase travel and trade between the two countries by removing government control over business decisions such as pricing, routes travelled and capacity, as well as increasing the number of passenger and cargo flights between the two countries. The shedding of these limitations will expand opportunities for economic growth and employment.
The Wicks Group (TWG) has advised both the State Aviation Authority of Ukraine (SAAU) and Ukraine International Airlines (UIA), and CAVOK Airlines recently on the negotiation process as it related to concluding the current agreement, and is confident the new Open Skies Agreement will provide significant benefits to the Ukrainian aviation sector and economy, as well as to the US.
The US Open Skies program aims to simplify procedures and promote job opportunities and economic growth through the globalization of airlines. An Open Skies Agreement typically results in increases in air traffic, more service offerings between markets, and lower fares, thereby yielding greater sufficiency and productivity in air service. Currently, Ukraine International Airlines, operates scheduled passenger service between Ukraine and the United States (New York – Kiev). CAVOK Airlines holds charter cargo authority and intends to begin all cargo operations in the near future. Antonov Airlines also holds authority to operate all cargo services as well.
The Wicks Group currently represents both Ukraine International Airlines, a major passenger and combination carrier and CAVOK Airlines, a charter cargo carrier. Both carriers are advantaged by The Wicks Group’s recent work in assisting Ukraine to achieve the FAA’s Category 1 status under the International Safety Assessment Program (IASA), a distinction they earned approximately 18 months ago. Under the IASA program, the FAA assesses whether a foreign country’s oversight of its air carriers (that operate, or seek to operate into the U.S. or codeshare with a U.S. Carrier) complies with ICAO international safety standards.
TWG assisted the parties in the final stages of the Open Skies agreement and believes that the achievement of both Category 1 and Open Skies is a substantial advancement for aviation in both countries. Barry Valentine, Senior Advisor to The Wicks Group and former FAA Administrator, was in attendance at the signing today which took place at The Treaty Room at the United States Department of State. Secretary Catherine Novelli and Minister Pyvovarsky each delivered brief remarks, before signing the bilateral agreement.