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Bloomberg
Ryanair Holdings Plc has revived plans to extend its network further east than ever before with flights from Ukraine, according to the European country’s premier.
A deal formalising the expansion should be signed later this week, Ukrainian Prime Minister Volodymyr Hroisman said in a statement on the government’s official website.
Europe’s biggest discount airline had previously aimed to serve the capital Kiev and the western city of Lviv, projecting demand amounting to more than 500,000 passengers a year. It put that plan on hold in July, saying Kiev airport had failed to honor terms of an outline growth agreement.
Ryanair is ramping up competition with Budapest-based Wizz Air Holdings Plc. in eastern Europe as western markets become increasingly saturated. While demand is currently limited, the potential for expansion is high, with the company saying Kiev has about three airline passengers a year per head of population compared with 15 in Dublin, where it is based.
Wizz, eastern Europe’s largest discount operator, closed a Ukrainian subsidiary in 2015 amid a recession associated with military conflict in the east of the country. The main airline currently serves six destinations from Lviv and three from Kiev, according to its website.