Civil Aviation Industry - Transport Aircraft

Cargo	Passenger
AN-32* AN-38D AN-70 AN-72/74P AN-74 AN-124 AN-178	AN-74TK-300 AN-140 AN-148 AN-158
Cargo Projects	Passenger Projects
	An-180 An-218 An-248 An-318 An-418

Ukraine inherited a significant aircraft manufacturing industry from the USSR, with the Antonov design bureau and related factories as its main component. The aircraft industry is considered as a high-tech nucleus for the redevelopment of the Ukrainian industry. The decline of the post-Soviet aviation sector also led to a sharp decrease of aircraft production during the last decade. Today, Antonov is focused on the production of a regional aircraft (An-140) and is continuing the development of other aircraft, including the military transport aircraft An-70. Ukrainian and EU industry have a major interest to increase their cooperation. The envisaged agreement could create a new framework for industrial aviation relations between the Ukraine and the EU which could accompany the restructuring and modernisation of the Ukrainian aerospace industry.

For 10 years (from 2001 to 2010 inclusive) Ukraviaprom built:

AN-32 - 8 pieces (2 of them in Libya, 1 Guinea, Iraq 1) An-72P - 1 piece An-74 - 6 pieces (2 of them in Laos, 2 Egypt, Libya 1) AN-124 - 1 piece (UAE) AN-140 - 10 (3 of them - Azerbaijan) AN-148 - 3 units Tu-334 - 1 pc

The total of 30 pieces included one experimental An-148 later rebuilt as the An-158. The AN-72, AN-74 and AN-140 built in Kharkov, the rest were built in Kiev.

Russo-Ukrainian cooperation in this domain is chiefly focus on aircraft and aviation engine manufacture. The two partner-nations jointly develop, make new planes through numerous cooperation mechanisms. For instance, AN-140 planes are serially made by the Kharkiv State-Owned Aviation Production Enterprise, which is assisting its Russian partner, the Samara Works in launching similar manufacture. Joint work continues to further improve and make the advanced medium military transport STOL aircraft AN-70. Through cooperation with Russia's TUPOLEV and RosAviaKosmos the Kyiv state-run aircraft making works AVIANT is completing the assembly of a second flying specimen of the new plane TU-334. The advanced AN-148 plane is being developed through the parties' cooperation, as well.

Ukraine had a very large metal-consuming sector, in the form of the FSU's second largest machine manufacturing and metal working industry, after Russia's. Ukraine, reflecting its former role in the Soviet machinebuilding industry, specialized in heavy machine manufacturing, generally producing equipment that required large quantities of steel to produce. Ukraine was noted for the production of metallurgical and mining excavation equipment (Kramatorsk); machinery used in electricity generation, such as turbines and generators (Kharkiv); transportation equipment [e.g., automobiles in Zaporizhzhya and Lutsk, heavy transport trucks in Kremenchug, and locomotives is in Luhansk (the largest locomotive plant in the FSU)]; shipbuilding [Mykolayiv (three shipyards specializing in deep-sea vessels) and Kherson]; agricultural machinery (e.g., tractor engine production in Kharkiv and plants in Kharkiv and Dnipropetrovska); machine tools; and aircraft.

In addition, about one-third of the Soviet Union's defense industrial capacity was in Ukraine; this included tank production; naval shipbuilding, such as aircraft carriers; electronics; aircraft components; and armaments. Also, there was a wide range of metal working activity, such as the ballbearing plant in Lutsk, which supplied automobile, truck, tractor, and bus plants in Ukraine, Belarus, and Russia with needed inputs. This metal-consuming sector by and large was spatially coincident with the ferrous metals industry from which it derived most of its inputs.

Having in its possession a fleet of the world's largest air cargo planes Antonov-124s and Antovov-225s, Ukraine offers good sales opportunities for U.S. firms involved in cargo terminal engineering and operations, cargo handling equipment, air navigation and ground support equipment, and freight forwarding and chartering. Additional opportunities exist in a planned conversion of former military airbases into cargo airports, actively promoted by the GOU.

The Ukraine-registered civil aircraft fleet predominantly consists of Soviet-made aircraft types Antonov-24, Tupolev-154 and -134, Yakovlev-40 and -42. Ukraine is facing a critical problem of modernizing its aviation equipment, becauseas the life span on most of aircraft types is close to expirationy. The industry needs to upgrade some 30 Yakovlev-42 and two Tupolev-154 aircraft.

Boeing is a leading supplier of foreign commercial aircraft in the Ukrainian market. In total, Ukrainian airlines own or lease 19 Boeing-737 family airplanes, and five MD-9's. In addition, Aerosvit leases two B767-300ER long-haul airliners. UIA and Aerosvit perform over 95% of all flights on Boeing aircraft. Airbus Industrie has just started itsthe market entry, having completed the local certification of its A320 and A319 aircraft type series, in October 2004. Ukrainian Mediterranean Airlines (UM Air) is the only Ukrainian company that operates an A320. Other Ukrainian regional airlines lease new Antonov-140 airplanes (48-seater turboprop) from the state leasing company Ukrtransleasing. The purchase cost of one Antonov-140 is $8.5 million.

Ukraine began the transition to market economy environments in the late 1980s. This primarily implied stiff competition both among domestic aerial carriers and with western companies, as well. The rules of the game were harsh, with fast-responding companies winning and the losers having to quit. Those companies which succeeded in promptly responding to changeable market environments through more flexible marketing policies, better and more efficient management, application of high technologies and rejuvenation of their fleets of aircraft, were the winners.

Since the break-up of the Soviet Union in 1991 and a protracted economic crisis that lasted through 1999, the airport traffic slumped by a factor of 12. Dozens of small regional airports and aerodromes were closed. The gradual economic recovery, that started in 1999, and increased international travel placed additional demands on existing airport facilities. Since 2000, the Ukrainian civil aviation industry has demonstrated steady growth in passenger turnover, with traffic increasing from an annual 6% in 2000 to over 34% in 2003 and 36.4% in 2004. Despite the slowdown in global commercial aviation following September 11, 2001 in the United States, the traffic growth in Ukrainian airports was not affected.

In Ukraine, around 80 airlines are registered at the Ukrainian Civil Aviation Authorities. The two main international airlines are Aerosvit and Ukraine International Airlines, both operating domestic and international flights. In 2004, Aerosvit accounted for 33% of the Ukrainian market. In October 2006 AeroSvit-Ukrainian Airlines transported its six-millionth passenger. This event occurred almost simultaneously with another important milestone, the company's 12 th anniversary. AeroSvit was founded in 1994 as a closed joint-stock company (CJSC). At present, 62% of AeroSvit's shares belong to Ukrainian owners-the State Property Fund (22.4%), Genaviainvest companies (about 25%), Ukrinfokonsalt (9.8%), and Buro (4.8%). The remaining 38% is owned by the Dutch company Gilward Investments BV.

AeroSvit was one of the first Ukrainian air carriers to offer its passengers flights on comfortable planes with high quality service and modern standards of aviation security. In October 1994, AeroSvit leased its first Boeing-737, which was used to perform flights from Kyiv to the capitals of Russia, Israel, and Greece as well as to Larnaca (Cyprus) and Odesa.

By 2003 AeroSvit Airlines maintained a unified aircraft fleet consisting of seven medium-haul Boeing 737's (with eight Boeing 737 joining the fleet in the end of October 2004) and two long-haul Boeing 767's. The company has 13 aircraft, including 11 medium-haul Boeing 737s and two long-haul Boeing 767s for transcontinental flights. AeroSvit plans to renew and expand its fleet by almost 3.5 times. In particular, by 2011 the Ukrainian carrier will start to use next generation medium and long-haul aircraft.

Ukrainian airports have the potential to service six million passengers annually (according to data provided by the Ukrainian Ministry of Transportation), but as of 2004 operated at lower than 40 percent capacity. Kyiv-Boryspil (KBP) was the largest Ukrainian airport servicing close to 60% of the country's commercial air traffic. Over 3.2 million passengers flew through Boryspil in 2004, a 34% growth compared with 2003. The airport served 72 local and foreign airlines in 2003 which operated scheduled flights to 103 destinations in 37 countries. Boryspil served 58,400 flights per year, including almost 67% of international flights to and from Ukraine. General passenger turnover at Ukrainian airports grew by 25% from 4.25 million in 2003 to 5.3 million in 2004, and about 6 million in 2005. The projection for 2006 is 7.5 million passengers.

Most of the equipment working in Ukrainian airports is based on technology of the early 1990s. Historically, airports had centralized supply of equipment according to norms of the Soviet Ministry of Civil Aviation. Today airports themselves make necessary procurements. Ukraine's airport industrial base is not technologically advanced, and is not able to satisfy the needs of airport infrastructure. There are few local manufacturers of products required in this sector.

The division of labor for producing a Ukrainian-made helicopter was being developed in 2011 by the government, stated Andriy Klyuyev, Minister of Economic Development and Trade. He noted that Ukraine already produces helicopter engines, hulls, and most types of components and assemblies, and so in 7-10 years the country should be able to produce its own helicopter. The Ukrainian Aviation Technology Research Institute will lead development of the new helicopter, with Motor Sich, the Vinnytsya Aviation Plant, the Sevastopol Aviation Plant, the Konotop AVIAKON Aircraft Repair Plant and SE Civil Aviation Plant 410 participating in this project.

Ukraine advocates boosting of cooperation with China in the aircraft industry. This was stated by President Viktor Yanukovych during his June 2011 meeting with Chinese President Hu Jintao. He noted that the Antonov state enterprise (Kyiv) could cooperate with the Chinese aviation companies, such as joint development of large and medium transport aircraft, turbo-jet transport aircraft, the joint production of An-70, An-148, and An-158. In this regard, the President proposed to instruct the governments of the two countries to work out the issues of possible projects that can be implemented in this area in the near future. As Ukrainian News earlier reported, on 20 April 2011, Ukraine and China established an inter-governmental commission for co-operation. Special attention was paid to development of cooperation between the two countries in the area of aircraft manufacturing during the meeting, particularly cooperation between the Antonov state enterprise and China's AVIC industrial corporation, expansion of the supply of aircraft engines and spare parts for them, as well as joint projects involving manufacturing of airplanes of various modifications.