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Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 1/97 AUA BUYS INTO UKRAINE INTERNATIONAL by Heiko Reuter Austrian Airlines (AUA) buys into Ukraine International Airlines (UIA) which was founded in 1992. Austria's national carrier holds 14,3 percent of UIA's base capital through a holding in which Swissair is represented also. According to AUA, this amounts to $49 million. The contract was signed in November. Both companies were already working together with code-sharing flights. According to FLUG REVUE research, this is the first financial engagement of a Western carrier with one of the many airlines which were founded after the former Soviet Union fell apart. By joining UIA, which is serving twelve West European destinations from Kiev with two Boeing 737-200s and one 737-300, AUA plans to closer tie up the newcomer and influence the partners business politics. AUA will be represented in both UIA's board of directors and in the airline's management through the holding. The main reason for AUA's engagement with UIA is to enforce their own position in the fight for the Eastern European market. Austrian and Lufthansa have been fighting for leadership of this segment for quite some time. While Lufthansa is offering more destinations and higher frequencies throughout Eastern Europe, the AUA/UIA alliance is offering the most extensive flight schedule into the Ukraine. From page 21 of FLUG REVUE 1/97 Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 1/97 Copyright 1996 by Motor-Presse Stuttgart. All rights reserved. Last updated December 11, 1996