Denys Kostrzhevskyi: Reviving Ukraine’s Aviation Industry After the War – A Step-by-Step Approach to Global Success

When it comes to reviving Ukraine’s aviation industry, strategic thinking is paramount. This is not merely about restoring passenger flights or rebuilding airports. The challenge is far greater – we must return Ukraine to the map as a key global aviation player. Achieving this requires a comprehensive, step-by-step, and systematic approach.

Phase One: Resuming Air Transport

Undoubtedly, the first and most urgent step is the resumption of air transport. This involves both passenger and cargo flights, but the starting point must be a thorough audit of the entire infrastructure. This includes reviewing and assessing the condition of airfields, airports, and runways. Without a reliable infrastructure base, any plans would be futile.

Equally important is the modernization of air navigation equipment. We must ensure flight safety at all stages, from air traffic control to navigation within the airspace.

Only after completing this audit, and implementing all necessary measures to restore infrastructure and ensure safety, can we reopen air services. Initially, this will necessitate involving foreign airlines. However, it is crucial to understand that such cooperation must consider the interests of Ukrainian airlines, maintaining parity in the allocation of air routes. Engaging foreign players will enable us to quickly restore air connectivity, revive historic and establish new flight routes, and lay the groundwork for creating a strong Ukrainian airline – a national carrier. This should be the strategic goal of this phase.

Phase Two: Establishing a National Carrier

Engaging foreign companies is just the first step. The next task is to establish a national carrier. It is critically important that this is not just another state-owned company – a feeding ground for corruption – but a private enterprise. Whether newly created or one of the existing Ukrainian airlines, it must receive government support through a public-private partnership mechanism. Government support is particularly crucial here. But instead of direct funding, the state should provide guarantees and create favorable conditions for business development.

One of the key issues is equipping the national carrier with a modern fleet. This can be achieved through a leasing program, where the state provides payment guarantees. The carrier would gradually purchase the aircraft using revenue from air transport. This approach would allow the acquisition of a modern fleet without significant financial strain on the budget.

Additionally, attention should be paid to the role of government institutions such as the Ministry of Foreign Affairs, the Ministry of Infrastructure, and the Aviation Administration. They must advocate for the national carrier’s interests at the international level, helping to open new routes. Each new route represents not just new business opportunities but also elevates Ukraine’s prestige as an aviation nation.

Phase Three: Reviving Aircraft Manufacturing

After establishing a national carrier and ensuring stable traffic, leading to consistent demand for new aircraft, it will be time to tackle an even more ambitious task – reviving Ukrainian aircraft manufacturing. However, it is vital to avoid the mistakes of the past. We should not attempt to revive outdated projects or resuscitate long-bankrupt, obsolete state-owned enterprises or holdings. Instead, we need to build a new, modern industry from scratch.

It is essential to recognize that Ukraine is decades behind leading aviation nations and manufacturers. But this does not mean we should remain on the sidelines. The answer lies in public-private partnerships, attracting leading aircraft manufacturing corporations to establish joint production facilities on Ukrainian soil. Simply put, Ukraine provides industrial capacity and ensures steady demand for aircraft from the national carrier, while partners provide the technology.

Another important aspect is that the global aviation industry is currently experiencing an upswing. Leading aircraft manufacturers have backlogged orders for years to come. This means that, in addition to domestic demand, there will also be external demand. Ukraine must seize this moment to develop its own aircraft manufacturing capabilities.

Lessons from Turkey: How to Achieve Success

A special focus should be given to Turkey’s example. A few decades ago, this country had rather modest capabilities in the aviation industry, but today it is one of the world’s market leaders. Turkish Airlines has become a model to follow, as they have managed to build one of the largest and youngest fleets in the world. How did they achieve this?

Turkey’s success lay not in state management of the industry, but in state facilitation. The government did not dictate business terms but created an enabling environment for growth. The country’s government focused on developing infrastructure, attracting investments, and supporting the national carrier. Turkey understood that success in this sector requires a partnership between the state and the private sector, and this became their trump card.

Ukraine can and should learn from Turkey, adapting this approach to its own conditions. State facilitation, not management, is the key to building a successful aviation industry capable of competing on the global stage.

Strategic Vision: Ukraine as a Leading Aviation Nation

Overall, the strategy for developing the aviation industry must be clearly defined at the state level. It should encompass three key components:

The social and economic impact of reviving the aviation industry cannot be underestimated. This issue extends far beyond economic development. It affects many aspects of public life and could become a significant catalyst for positive change.

Social Impact: Reviving the aviation industry will create thousands of new jobs across various sectors of the economy. These will not only be jobs within the aviation sector itself – pilots, engineers, flight attendants – but also in related industries such as manufacturing, maintenance, logistics, and tourism. The availability of stable and well-paying jobs will help improve the standard of living, reduce the migration of labor resources abroad, particularly among the youth. A crucial part of this social transformation will be the development of educational programs and institutions that will prepare a new generation of highly skilled professionals for the aviation industry.

Economic Impact: Reviving the aviation industry will serve as a powerful stimulus for the development of Ukraine’s entire economy. Firstly, it will attract both domestic and foreign investments. A well-developed aviation infrastructure and a strong national carrier will become attractive to investors, which in turn will open access to new financial resources and technologies. Secondly, the development of air transport and aircraft manufacturing will increase Ukraine’s export potential. Modern Ukrainian-made aircraft could find buyers in international markets, and the expansion of air connectivity will promote trade, tourism, and other services.

National Pride and Independence: Reviving the aviation industry is not just about economics, but also about restoring national pride. Ukraine has rich traditions in aircraft manufacturing, and returning to this heritage will become an important symbol of the nation’s resurgence after difficult times. This will help strengthen national identity, boost confidence in our capabilities, and stimulate further development in other industrial sectors.

International Prestige: A modern aviation industry is a benchmark of a country’s technological development and economic stability. Reviving this sector will not only restore Ukraine’s status as a regional leader but also strengthen its position on the global stage. A national carrier that competes with leading global brands will become Ukraine’s calling card, a symbol of its revival and new beginning.

Therefore, after the war, Ukraine will have the opportunity to take these steps and transform its aviation industry into a powerful engine for national development. But for this to happen, all these ideas must be clearly outlined and embedded in a state strategy for aviation industry development. This strategy should form the foundation for actions by both the government and private companies, ensuring sustained development in the long term. Only then will Ukraine be able to truly become a leading aviation nation.

Author: Denys Kostrzhevskyi, Chairman of the Board of Directors, Kyiv International Airport