Potential Aviation Industry in Ukraine

by Meifan Honcharuk
Monday, November 29, 2021
Potential Aviation Industry in Ukraine

Ukraine's potential in the aviation industry is a tenfold growth in the near future

Ukraine has a unique geographic location at the crossroads of routes between continents, this benefit helps Ukraine to become a large regional aviation and tourist hub.

Experts and heads of the world's largest aviation and travel companies are convinced that the potential of Ukraine in the aviation industry is a tenfold growth in the near future.

As a result of the signing of the "Open Skies" agreement and the development of national domestic air carriers, there is an increase in the Ukrainian air industry.

3 key factors which help to develop the aviation industry in Ukraine

1. Agreement on Open Skies

The Open Skies Agreement makes it possible to liberalize Ukraine's relations with Europe, European air carriers and opens the way for the availability of travel by plane to become commonplace for Ukrainians.

The agreement will lead to more competition, more routes and lower ticket prices. It also opens up the possibility of recognizing Ukrainian 

pilot certificates and supports our school of aircraft construction.

2. Development of aviation infrastructure

The second factor of change is government investment in the development of aviation infrastructure. This year alone, the state's total investment in relevant projects amounted to $130 million.

Financing of the aviation industry in 2021:

  • $52 million — in the construction of an airport in Dnipro city;
  • $25 million — the airport in Odesa, more than 600 million - the airport in Vinnytsia;
  • $18 million — is the Kherson airport;
  • $7 million — for the construction of a new terminal at the Boryspil airport.

According to the prime minister of Ukraine, the country is also actively working with international partners and international financial institutions.

3. Development of the Ukrainian aircraft industry

The third factor of change is the development of the Ukrainian aircraft industry.

  • Ukraine has a target program for developing aircraft construction for 21-30 years, which contains a vital roadmap. It is assumed that the total volume of investments in these years will be more than $1.2 billion;
  • 45 high-tech aircraft manufacturing enterprises will receive tax incentives until January 1, 2025 — exemption from taxation of profits, VAT and land tax;
  • The action plan provides the modernization of passenger and transport aircraft production of the Academy of sciences, helicopters, drones, and import substitution of goods from abroad.
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