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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 formalizing the expansion should be signed later this week, Ukrainian Prime Minister Volodymyr Hroisman said Wednesday 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.

Under Ryanair’s previous strategy Lviv was set for seven routes and Kiev four. The carrier declined to comment on its current plans.

Boeing Co. said Tuesday that new Ukrainian carrier SkyUp Airlines had finalized an order for five 737 Max planes and would begin flights in April. Kiev-based Ukraine International Airlines is the country’s largest carrier, with a fleet of 43 wide-body and single-aisle jetliners, according to its website.

–With assistance from Christopher Jasper

This article was written by Volodymyr Verbyany from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to

Photo Credit: Europe's largest budget carrier has many planes in its home country of Ireland and, shown here, at Dublin International Airport. The carrier aims to expand service to Ukraine. Simon Dawson / Bloomberg