Ryanair Story, Or Why We Need For Privatization


According to CASE Ukraine`s CEO Dmytro Boyarchuk, there is nothing extraordinary with Irish low-coster Ryanair`s refusal to enter the Ukrainian market. That is another ordinary case, and there is nothing critical in it. He wrote this in a column for ‘Novoye Vremia’ media outlet.

It is unlikely that this situation will affect the investment climate. It is so low. Nevertheless, we did not get a new positive bell.

Ryanair has not entered Ukraine. IKEA – has not too. How many other companies did not enter our country? How many companies have favored Belarus, Moldova, Russia after facing Ukrainian realities? Economic losses from this ‘not-entering’ exceed the potential losses of Ryanair’s refusal by tens or hundreds of times.

There should be less state itself and up to a dozen state-owned companies. Why should Boryspil International Airport belong to the state?

The simulated dismissal of the airport`s director by the government will not fix the situation. Even if the director is dismissed and the situation with Ryanair is over, the mechanism of decision-making in Ukraine will not change.

The only way to improve the situation is to privatize. It means sailing of the maximum amount of state assets to foreign investors. In our context of market monopolization, only a mass foreign investors` entering, who are not accustomed to such practices, may change something.

July 13, 2017