Ukrainian government creates fund to cover airlines’ insurance shortfall | News

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The Ukrainian government has chosen to allocate 16.6 billion hrs ($590 million) of funds to cover the insurance of aircraft operating in the country.

The measure aims to protect the country’s airlines after carriers were told they would lose their insurance coverage against the risk of armed conflict.

Under this plan, additional reserve funds from the state budget will be allocated separately to an account in the Ministry of Infrastructure.

“[This] The decision is a signal to the international community that Ukraine is ready to assume financial obligations for the safety of aircraft in Ukrainian airspace,” the ministry said.

He adds that at least 23 planes are covered by the funds, which will be returned to the budget if they are not used.

“Most flights to and from Ukraine are proceeding normally,” Infrastructure Minister Alexander Kubrakov said.

“We are in constant contact with our international partners and Ukrainian companies to prevent any possible crisis situation.”

Low-cost carrier SkyUp, which had expressed concern over the potential disruption, said negotiations with insurers had been “difficult” but the government’s joint efforts had “succeeded in delivering results”.

He restored ticket sales, said general manager Dmitry Seroukhov. “Flights to Ukraine remain safe and secure. This is a great example of effective cooperation between business and government, but most importantly, it assures all passengers that they can plan a trip safely.

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