News

June News

Transition of paper tickets to new “e-ticket system”
After June 1, 2008 paper airline tickets will be replaced by electronic tickets. All passengers will have to do is order and pay for an airline ticket via the Internet or in person at a ticket counter and simply show their personal ID card upon boarding. Passengers will be required to provide their passport data in exchange for which they will receive an email with route check information indicating flight date, number, name of airport and other data.

Arrival of 2 budget airlines in Ukraine
Carpatair, the Romanian based airlines, will inaugurate a direct route network of flights from Kiev to Romania, Italy, Germany and Greece in June 2008. This will create many new opportunities for business and leisure travelers to purchase airfare tickets at low cost prices. But please do not confuse the airports! Carpatair Airlines has chosen to fly from the Kiev Zhuliany – the “Kiev City Airport” located very close and conveniently to downtown.   This is not the Borispol airport, about 40 km away from the city. There is public transport (buses and trolleybuses) available to/from Kiev Zhuliany airport, a taxi costs around 60 UAH and it takes just 10 to 15 minutes to get there for the morning departures. Meanwhile, the Hungarian airline Wizz Air is set to launch domestic flights in Ukraine this summer beginning with flights from Kyiv’s Boryspil airport to Lviv, Kharkiv, Simferopol and Odessa for less than the cost of a train ticket. Wizz Air’s emergence in the Ukrainian airline market is set to grow and include flights to London, Luton, Dusseldorf and Milan-Bergamo in September 2008.

Hryvna revaluation impacts business and average consumers
The new hryvna to dollar correlation calls for a revision of interest rates on deposits and loans. The strengthening the official hyrvna exchange rate is not revaluation of currency. It actually means bringing the official rate in line with the dollar on the inter-bank exchange. High inflation is forcing the NBU (National Bank of Ukraine) and the Ministry of Finance to reduce the amount of free hryvnas in the economy which will trigger a general increase of interest rates on loans and deposits. Everyone is well aware of the rise in consumer prices in Ukraine and it is calculated that the reinforcement of the hryvna rate will help reduce inflation by 3%.

EU cancels steel import quotas for Ukraine
In the association of Ukraine joining the World Trade Organization, the European Union cancelled export quotas on certain kinds of steel products made in Ukraine. After the cancellation of export quotas, Ukrainian metallurgists could earn an additional US $100 million by the end of the year. As well, since Ukraine has access to the EU market, the export of metal goods to EU countries is estimated to increase 5-7% by the end of the year.

Growth rate of salaries slowdown
Employment and recruitment agencies consider Kiev’s labor market to be saturated and are on the threshold of major changes. The labor market in almost all spheres of economic activity is growing and Kiev continues to attract more Ukrainians from the provinces who are more motivated and interested in career growth. People in the age group of 20 to 35 are coming to the nation’s capital from the provinces and their goal is locate employment due to the higher rate of salaries being offered. At the end of 2007 the average salary in Kiev was 3,040 UAH, compared to 1,040 UAH being offered in some provinces. Employment agencies understand the majority of high paid while collar workers will experience a rapid cool down of inflated salaries in the next year or two. Employment agencies have oriented themselves to attracting and hiring personnel with many attractive options offered through fringe benefits. For example, many employers pay for medical insurance, mobile phones and monthly phone bills. The time has come when clerical staff, and not just top management, will see a stable rise in salaries. Job placement agencies are prepared to work with this new reality and there should be a downswing in salaries for top management.

Ukrainian football Premier League
Owners of major Ukrainian football teams in the supreme league met in Kiev to discuss the creation of Ukrainian football Premier League. The owners failed to reach an agreement on financial and staffing issues. Yet, there was a consensus to elect Vitaliy Danylov as acting president of the Premier League for a period of two months. The issue of electing the league’s president will be postponed until July 15.

Ukrainian football clubs of the League Supreme
Shakhtar (Donetsk), Dynamo (Kiev), Metalist (Kharkov), Dnipro (Dnepropetrovsk), Tavriya (Simferopol), Arsenal (Kiev), Chornomorets (Odessa), Vorskla (Poltava), Metalurg (Zaporozhie), Karpaty (Lvov), Zorya (Luhansk), Metalurg (Donetsk), Kryvbas (Kryvoy Roh), FC Kharkiv