Ukraine International Airlines (PS, Kyiv Boryspil) will next year reduce its fleet by 9% and its staff compliment by 26% after it failed to secure USD100million in emergency funding from government.

CEO Aron Mayberg told the Interfax news agency that the carrier has already reduced its capacity by 11% this year alone and plans to further cut costs by streamlining its IT services, renewing its fleet, and enhancing the efficiency of its revenue collection programmes.

Following Kiev's decision to deny the carrier a much needed loan, Mayberg said shareholders had extended support in the form of long-term loans. He did not disclose their value or their maturity dates.

"We are moving to a different model, have given up ambitious plans and have now turned to outsourcing. In 2015, UIA will concentrate on its core business - air transport," he said.

Meanwhile, the carrier has won a long running court battle with Swissport International Ltd over the ownership of the Interavia LLC groundhandling firm, formerly known as Swissport Ukraine.

Last week, the Supreme Economic Court of Ukraine ruled that UIA's acquisition of a 70.6% of the nominal capital of Swissport Ukraine LLC was done legitimately with its valuation just.

The main dispute between UIA and Swissport International centred around the value of Swissport Ukraine. According to the Swiss company, UIA valued a 70.6% stake in Swissport Ukraine at USD400'000 while Swissport International valued it at USD25-30 million.

Swissport International acquired a 51% stake in Interavia from UIA in 2007 when the carrier was still under state control.

In its defense, the Swiss firm claims it has been a victim of corporate raiding with UIA, rumoured to be ultimately owned by oligarch Igor Kolomoisky, governor of the Dnepropetrovsk district, having used his political influence to secure a ruling in favour of the carrier.