Ukraine: new licensing conditions for air transportation services

On 10 March 2017 the Cabinet of Ministers of Ukraine approved new conditions (the “Licensing Conditions”) to obtain a license for the transportation of passengers, dangerous goods and dangerous waste by air (the “License”).

The new Licensing Conditions intend to provide clear and transparent rules to companies looking to enter the Ukrainian market for air transportation services.

The applicants must comply with the following requirements set out in the Licensing Conditions:

• an applicant shall have a valid air operator's certificate and own or lease at least one aircraft;

• an applicant shall engage properly qualified personnel under individual employment agreements;

• more than 50% of an applicant’s shares must be owned by the state of Ukraine, Ukrainian natural persons or legal entities, unless otherwise specified by the international treaty;

• an applicant shall not be controlled by a natural person or a legal entity which is a resident of any state who acts with military aggression towards Ukraine.

In order to obtain the License, an applicant shall file an application and supporting documents to the State Aviation Administration of Ukraine (the “Authority”) and must pay an application fee in amount of UAH 3,200 (circa. EUR 115) no later than 10 (ten) working days from the date of online notice about the positive decision taken by the Authority.

The Authority shall issue the License if there are no grounds for rejection within 10 working days upon receipt of an application together with all necessary supporting documents.

The License is issued for an indefinite term.

The text of the Licensing Conditions has not been officially published as at the date of this alert. The Licensing Conditions will become effective upon their promulgation.

Legislation: Resolution of the Cabinet of Ministers of Ukraine No. 134 dated 10 March 2017 “On Approving Licensing Conditions for performing Commercial Activity in the sphere of Transportation of Passengers, Dangerous Goods and Dangerous Waste by Air Transport”