On the runway or in a nosedive: what determines the fate of Ukrainian aviation

Russia’s war against our state has not erased aviation Ukraine from the map. Despite the closed airspace for civil aviation, constant shelling, and the loss of a number of capacities, the industry has preserved the key — the school of engineering thought, highly professional personnel, and enterprises capable of working in the most difficult conditions. The unique experience accumulated over the years has not only withstood the test but has also proven its value to the state. Today, Ukrainian aviation has a chance for significant development — both in the defense sector and in civil infrastructure. But this will only be possible with strategic state support — political, economic, and regulatory, writes UNN.

State program: a framework for relaunchEven before the full-scale invasion, Ukraine had approved the State Target Scientific and Technical Program for the Development of the Aviation Industry for 2021-2030. It provides for the development of competitive aviation technologies, localization of production, import substitution, creation of new passenger and cargo aircraft (including the An family), helicopters, engines, drones, simulators, certification in accordance with international standards, and increased exports.

In addition, during 2010-2025, Ukraine had tax and customs benefits for aircraft manufacturing enterprises, investment incentives in the form of tax credits for research and development, accelerated depreciation, as well as export support in the form of state guarantees and insurance of export contracts.

Together, these steps provided basic conditions for the preservation and development of the aviation industry even in the face of growing risks.

What has been achieved?One of the leaders and world-renowned brands of Ukrainian aviation remains SE “Antonov”. Despite the war, the enterprise continues to work on new types of equipment and modernization of existing ones. In particular, a deep modernization of the An-124-100 heavy transport aircraft has been completed, which retains its uniqueness and demand in the world. The production of the An-178 transport aircraft, created after 2010, is developing.

In addition, SE “Antonov” created a whole range of new types of aircraft, including: the An-38 light multi-purpose aircraft, the An-140 regional turboprop passenger aircraft, the An-70 medium military transport aircraft with short takeoff and landing, the An-148, An-158 regional jets, and the An-132D demonstrator aircraft. The An-74 and An-32 families were expanded. The An-225 was modernized and commercial operation began. “Antonov Airlines” took a prominent place in the air cargo market.

It is important to note that the engines for “Ukrainian birds” are the result of the work of Ukrainian specialists. In particular, the “Motor Sich” enterprise provides for the production and modernization of aircraft engines for airplanes and helicopters. The company gradually abandoned Russian components and today works both for the needs of the Armed Forces and for export, supporting a critically important component of defense aviation. In recent years, “Motor Sich” has launched five new types of aircraft engines. These developments are in stable demand both in Ukraine and on the international market.

An important role in maintaining the Ukrainian aircraft fleet is played by the state enterprise “Aviakon”, which is engaged in the repair and re-equipment of Mi-8 and Mi-24 helicopters. The enterprise, among other things, performs major repairs, avionics updates, and the installation of protection systems.

The Rada proposes to grant benefits to aircraft manufacturing enterprises within Defence City to preserve potential21.07.25, 17:09 • 95147 views

Thanks to its unique aircraft fleet, Ukrainian airlines are gradually conquering the market for humanitarian transportation services for international organizations and governments. Due to sanctions, Ukraine has managed to displace Russia and achieve a 43% share of UN mission services, thus demonstrating its ability to provide high-quality aviation services, be competitive under the highest requirements, have highly qualified specialists, and relevant certifications.

For example, “Aviakompaniya Konstanta” under the leadership of Roman Mileshko is the largest private operator of “An” aircraft in Ukraine. The company has not only preserved its fleet and technical base but also continues to service and modernize aviation equipment for military, state, and international structures. The airline’s aircraft perform humanitarian missions, are involved in the World Food Program, deliver aid to disaster zones, and support international peacekeeping operations. Since 2019, the company has been registered with the UN as an official air carrier and is also an authorized operator in the EU (EASA TCO).

It is worth noting that obtaining a contract with the UN is extremely difficult. This is a multi-level, competitive, and quite bureaucratic procedure that requires companies to have a high level of trust, technical capability, and experience in difficult conditions. The fact that Ukrainian “Aviakompaniya Konstanta” succeeded in this is indicative – it is an example of how professionalism, responsibility, and systematic work allow one to withstand the highest challenges. The company works where it is difficult, risky, and critically important, which is of particular importance both for Ukraine and for positioning our state in the international market.

Alongside enterprises engaged in the production, repair, and modernization of aircraft and helicopters, the segment of modern aviation technologies, which largely support Ukraine’s defense, is also actively developing in Ukraine. One of the leading examples in this area is the company “Ukrspecsystems”, which specializes in the creation of unmanned aerial systems and electronics. It is a manufacturer of “PD-2” and “Mini Shark” UAVs, as well as a supplier of optics, navigation solutions for aviation, and ground control stations. According to the company’s official statistics, in 2024, one of the Shark crews flew more than 1,126 hours, and each hour in the sky brought new intelligence data, new targets, and results for the benefit of Ukraine.

All these examples prove that even in the conditions of a full-scale war, the Ukrainian aviation industry has not only maintained its viability but has also proven its readiness to be an independent manufacturer, exporter, and strategic player.

Between takeoff and fall: how Ukrainian aviation holds up during the warToday, the Ukrainian aviation industry is at a crossroads. Despite its proven ability to operate in wartime conditions, maintain export potential, and support defense, most enterprises are balancing on the brink – between survival and loss.

In an open statement, the Aerospace Association of Ukraine states that from January 1, 2025, the aviation industry lost the benefits that were in effect under the special support regime since 2010. This led to a significant increase in production costs (by 25-40%), limited the import of critical equipment due to VAT and customs duties, and reduced opportunities for reinvestment, which threatens the preservation of tens of thousands of highly qualified jobs.

Thus, without systemic state policy, targeted financing, export support, and the creation of stimulating conditions, the aviation industry risks repeating the fate of the space industry – losing personnel, technologies, and competitive positions. Instead, timely strategic support will allow not only to preserve what has already been achieved but also to scale success, making aviation one of the key pillars of Ukraine’s post-war recovery.

One of the key solutions could be the inclusion of aircraft manufacturing enterprises in the list of Defence City residents – as a tool for systemic support of companies working for the country’s defense capability. In the current version of the draft laws, the aircraft manufacturing industry risks being left out of the new benefits and preferences. As Ruslan Melnychenko, head of the legal committee of the Aerospace Association of Ukraine, explains, currently none of the specialized enterprises – in particular “Antonov” or “Motor Sich” – meet the current criteria, as they are not purely defense-oriented, but also engage in scientific research, engineering, and civil aviation maintenance. The Association proposes to expand the list of Defence City residents to include enterprises from the official government list of aircraft manufacturing entities that undergo strict verification.

Right now, despite all the difficulties, Ukraine has a unique chance to form a new model of aviation development – based on internal resources, Western standards, and the support of European partners. The completion of the Ruslan modernization is more than a separate technical victory. It is a signal that the Ukrainian sky is not lost. And that with the right approach, it can not only be held but also confidently conquered again.

By 2030, the state will be able to complete the certification of key aircraft types, launch the export of modernized models, and build an integrated maintenance infrastructure. Companies like “Aviakompaniya Konstanta”, which already demonstrate flexibility, technical capability, and strategic responsibility, will play a special role in this.

RecallA special support regime for enterprises of the defense-industrial complex, Defence City, is being introduced in Ukraine. On July 16, 2025, the Verkhovna Rada voted in the first reading for three key draft laws of the initiative.

Experts generally positively assess the first steps in creating Defence City, noting that such decisions should have been made at the beginning of the full-scale war. At the same time, experts emphasize that the vote held is only the beginning, and for the initiative to truly work.

Preparations for the second reading are currently underway, and a number of amendments have already been submitted to the documents, including proposals concerning the aviation industry, as in the current version of the draft laws on Defence City, enterprises in this sector may find themselves outside the scope of the envisaged benefits and special regime.