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2 Ukrainian Airlines May Cancel Flights

Ukraine's two main airlines threatened Thursday to cancel all flights, blaming a sharp hike in jet fuel prices.

AeroSvit and Ukrainian International Airlines said they had refused to accept a 40% increase in jet fuel prices that went into place Thursday by fuel suppliers Krebo and LukAviaOil. The two airlines warned they may cancel all their flights beginning Friday if the government does not take action.

"The price is unreasonable. We cannot conclude this deal as it means a $14 million loss for our company this year," said Yevhenia Satskaya, a spokeswoman for Ukrainian International Airlines.

AeroSvit said Thursday it had canceled one domestic flight and might cancel several other domestic flights.

The airlines asked the government to intervene, noting that the price hike came as the international price for oil had decreased.

LukAviaOil representatives refused to comment on the dispute; no one was available at Krebo for comment.

Transport Minister Mykola Rudkovsky said talks involving all sides would be held later Thursday.

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