UIA Says It's Open To Negotiations With Swissport

According to a press release, UIA has always been and remains open to negotiations with Swissport to resolve disputes in a legal manner and in compliance with the standards of business ethics accepted on any civilized market environment.

Constructive dialogue is possible in the case Swissport makes apologies for slanderous statements and rebuts groundless charges filed against UIA and its shareholders, which have been - and still are – disseminated in the press throughout the court proceedings between the former partners.

UIA considers it necessary to stress once again that throughout this corporate conflict it has always employed legitimate methods to protect its interests in court and sought to deal with disputed issues within the legal environment only. UIA has never resorted to ex delicto methods and did not try to engage governmental and diplomatic bodies of various countries as well as lobbyists into the economic dispute between two private entities.

UIA actions have always been systematic and transparent to its partner and Swissport Ukraine subsidiary (hereinafter – INTERAVIA), taken in compliance with the shareholders' agreement, the statutory documents, and, surely, the interests of the subsidiary.

However, the other party in the dispute – Swissport – continues with its attempts to decide the controversy of the two business entities by engaging the governmental authorities of Ukraine and the EU, which, according to the law, must not interfere with the judiciary if not a litigator in the process. Swissport’s press release disseminated on October 3, 2013, provides solid evidence of the company's intentions. Moreover, Swissport representatives' public statements citing the fact that well-informed sources within Ukrainian judicial bodies have provided the company with confidential information have forced UIA lawyers to turn to public prosecutions department and to file a fact-finding inquiry since these facts bear the marks of corruption.

The European Union leaders outlined their position on the issue in their response to Swissport’s letter asking them to intervene in the dispute and to protect Swissport’s property interests in Swissport Ukraine by exerting leverage on the government of Ukraine. The European Commission's position can be summarized by saying that this reputable international organization does not intend to intervene in an economic dispute between two private companies. Nevertheless, Swissport continues with the attempts to affect diplomatic relations between Ukraine and the European Union by threatening to scuttle the already reached agreements on Ukraine's associated membership in the EU and Single European Sky.

The facts mentioned above clearly demonstrate that all Swissport statements on the company's readiness to resolve the conflict with UIA at the negotiating table are not credible. The trial is in progress. UIA considers Swissport’s appeals to the Anti-raider Commission (actually, direct reference to how the Commission must act to protect Swissport’s interests) as well as other attempts to exert political and administrative leverage on the court to be unethical and to bear the marks of a delict. UIA repeatedly outlined its position in respect to Swissport’s unlawful actions and remains consistent that under conditions of intensive leverage the courts of Ukraine are being denied the opportunity to impartially hear the case. In turn, Swissport’s behavior can't be considered consistent. The company's press release dated October 3, 2013, welcomes the ruling of the Ukrainian court which the company filed charges against for being prejudiced and bribable just a few days before expressing the position in the company's public statements and a letter to the European Commission.

UIA once again emphasizes that the Airline is confident in the justness of its position and has solid evidential basis to confirm the legitimacy of its claims. UIA’s rightness in this dispute has also been confirmed by an independent experts' report.

Regarding INTERAVIA operations, UIA claims that its subsidiary operates sustainably and continuously and litigation will not affect INTERAVIA’s operations in the slightest. UIA has acted and will continue to act in the best interest of its subsidiary.

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