Irish low-cost airline Ryanair has canceled plans to start flying to destinations in Ukraine, saying the main airport in the capital, Kyiv, had not honored terms agreed earlier this year.
"Kiev airport has ... chosen to protect high fare airlines and deprive Ukrainian consumers/visitors access to Europe's lowest air fares," Ryanair said in a statement on July 10.
Ryanair had announced in March that it would begin operating 15 weekly flights on four routes from Britain, Sweden and the Netherlands, and seven new routes were also planned for the western Ukrainian city of Lviv, with some 500,000 passengers expected each year.
"We regret also that Lviv Airport has fallen victim to Kyiv Airport’s decision," the statement said.
The canceled flights will lead to 400 job cuts, Ryanair said, and people who have already booked tickets will be refunded.
A spokesman for Kyiv's Boryspil Airport did not immediately respond to an emailed request for comment.
Ryanair said it would transfer the capacity to other markets, such as Germany, Israel, and Poland.
Last year, Ryanair was the largest European airline by scheduled passengers flown, and carried more international passengers than any other airline.