Business news from Ukraine

Ukrainian company Avtomagistral-Pivden to build airport in Romania

Romania has signed an agreement with a consortium of concessionaires Avant Airports and Avtomagistral-Pivden to build a new airport near Bucharest, the company’s press service told Interfax-Ukraine.

The new airport may be built on the site of a decommissioned military airfield in the town of Alexene, 66 km from Bucharest, and will be an alternative to the airport in Otopeni. It will be able to handle all categories of cargo, accept wide-body, long-haul aircraft such as Boeing 777 or Airbus A330, create conditions for attracting low-cost airlines, and specialize in aircraft maintenance.

“We see Aleksene Airport as a state-of-the-art aviation hub and a driver of economic growth both for the Ialomita region and Romania as a whole. In Ukraine, our company has participated in the reconstruction of airports in Mykolaiv, Kherson, and Odesa. In Romania, we are completing the reconstruction of the Satu Mare airport runway, and now we have the opportunity to participate in what is probably the largest and most ambitious infrastructure project in Romania. Our victory in the tender is evidence of the trust in the company on the part of Romanian partners. If we manage to attract investment and implement the project, it will help us open the EU market,” said Mykola Tymofeev, CEO of Avtomagistral-Pivden.

The concept of the future airport will include a passenger terminal with an area of 30 thousand square meters, capable of handling 6.5 million passengers annually, as well as a cargo terminal of 20 thousand square meters to handle more than 10 thousand tons of cargo per year. The project’s facilities also include a 30,000-square-meter aircraft repair and maintenance facility, an aviation academy, fuel stations, customs, and a photovoltaic park designed to ensure the airport’s energy independence.

The project developer, Avant Airports, notes that it has attracted a team of the best civil aviation experts from more than 15 countries to develop the project. “Avtomagistral-Pivden will be responsible for the execution of the work.

During the signing of the concession agreement with the local community, the Jalomica region, Avant Airports co-founder Mircea Tudor noted that the company plans to build the world’s first passive airport and certify it according to BREEAM.

Alexene Airport will be Romania’s first private airport. Only the first stage has been completed, with a concession agreement signed with the local community. Now the developer can begin the process of attracting investments, which are estimated at EUR 400 million. The project will take four years to complete.

Avtomagistral-Pivden LLC has been on the market since 2004. It designs and builds highways, bridges, interchanges, airfield complexes, and hydraulic structures. The company’s owner is listed in Opendatabot as Oleksandr Boyko. According to the financial results for 2023, the company’s net profit amounted to UAH 624.9 million, and revenue was UAH 8.215 billion.

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Boryspil Airport Announces Tender for Driver Insurance

On September 26, Boryspil International Airport (Kyiv) announced a tender for compulsory insurance of drivers against transport accidents.

According to the electronic public procurement system Prozorro, the expected price offer was UAH 43,972 thousand.

Applications for participation in the tender are accepted until October 4.

As reported, the winner of a similar tender a year earlier was Guardian Insurance Company.

Boryspil International Airport accounts for over 68% of Ukraine’s passenger air traffic and is the only Ukrainian airport that serves long-haul flights. More than 50 airlines operate regular flights from the airport to more than 100 routes around the world.

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Passenger traffic at Frankfurt am Main Airport to double in 2022

Frankfurt am Main Airport (FRG) handled 48.918 mln passengers in 2022, which was 97.2% higher than the previous year.
At the same time, passenger traffic remains 30.7 percent below the pre-pandemic 2019 figure, according to a press release from operator Fraport.
“2022 was a very tumultuous and challenging year for the entire aviation industry,” said Fraport CEO Stefan Schulte. – After lockdowns at the beginning of the year, the sudden and dramatic increase in demand was a heavy burden for all partners ramping up operations. Due to the complexity of the systems at many airports, including Frankfurt, the resumption of air traffic was unstable.”
Nevertheless, the group’s airports in other countries that focus on tourist traffic performed well. In Greece, among others, performance even surpassed pre-demic levels, the head of the company said.
“Looking ahead, we are confident there will be further growth in 2023. People want to travel, and we are working at full capacity to provide passengers with the best airport experience possible. Nevertheless, the situation remains challenging,” he noted.
The number of aircraft takeoffs and landings jumped 45.9 percent last year to 382,211,000. Relative to 2019 levels, the figure was down 25.6 percent.
Meanwhile, the volume of freight and postal shipments decreased by 13.3% year-on-year to about 2 million tons. Compared to the pre-season year, shipments decreased by 5.6%.
Four million people used the airport’s services in December, up 46.2 percent from the same month a year earlier. The number of takeoffs and landings increased by 7.9% to 30,157,000. Cargo and mail traffic dropped by 19% to 159,671,000 tons.
Fraport Group also released data on airports in other countries it manages.
Thus, at the airport named after Jože Pučnik (Ljubljana, Slovenia) the group served 970.15 thousand passengers in 2022 (more than doubling over the previous year), and in two airports in Brazil (Fortaleza and Porto Alegre) – 12.4 million passengers (+41%).
In Lima, Peru, passenger traffic jumped 72% to about 18.6 million.
In Greece, where Fraport operates 14 airports, traffic has increased by 79% to 31.2 million passengers.
The combined passenger traffic of the airports in Varna and Burgas (Bulgaria) increased by 59.2% to around 3.1 million passengers.
Antalya Airport (Turkey) served about 3.1 million people last year, which is 41.8% more than in 2021.

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Transcarpathian Regional Council wants to resume work of Uzhhorod Airport in 1-2 months

At a session at the end of this week, the Transcarpathian Regional Council decided to increase the authorized capital of the Uzhgorod airport located near the border with the EU by UAH 26 million in order to resume its work without waiting for the end of the war.
“We have significantly raised the funding of the Uzhgorod airport … in order to carry out the necessary procedures, obtain permits, build the necessary buildings and, finally, start earning, and not count losses,” Volodymyr Chubirko, head of the Transcarpathian Regional Council, wrote on Facebook.
“The former minus – the runway, which starts abroad, has become its plus. We must use it,” he said.
The international airport “Uzhgorod” is located in a mountainous area in such a way that the threshold of the runway 10 is located a few hundred meters from the Ukrainian-Slovak border. Therefore, Slovak airspace is used for instrument landings at this aerodrome.
In September 2020, Ukraine and Slovakia signed an intergovernmental agreement, and a year later, the airport accepted the first flight using a certain part of the Slovak airspace.
Local media also report Chubirko’s words, who expressed confidence that the airport will be launched “in a month or two”, and Ukrainian companies based in Europe today will use it.

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Cherkasy airport has received an aerodrome certificate, according to which the airport meets the requirements of Ukrainian civil aviation legislation and is suitable for aircraft operation.According to the website of Cherkasy Regional State Administration, the airport resumed certification after a three-year break. The document is valid until 2024.Also, documents have been submitted for the commissioning of the airport runway.The project for the overhaul of Cherkasy airport was launched in 2018, but the work was suspended and resumed only in the summer of 2021. The total cost of the reconstruction was about UAH 129 million.



Businessman Vasyl Khmelnytsky is looking for a partner for the joint development of Kyiv Sikorsky International Airport (Zhuliany).
“I am now looking for a partner in the airport [Kyiv International Airport]. But it is important for me not just to sell the airport, but to find partners who have a slot of aircraft, who have a reputation in this business, who have cheap loans, who will do the right strategy for the airport. I need their experience,” Vasyl Khmelnytsky said during an interview with co-owner and CEO of TIS port Andriy Stavnitser.
The businessman also stressed that synergy with a partner is important to him.
As reported, Khmelnytsky announced that he plans to continue investing in Kyiv airport.
Kyiv International Airport is located 7 km from the center of the capital. It ranks second in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area of 21,000 square meters. The airport runway allows accepting aircraft such as Boeing-737, Airbus A-320. However, even with the A-320, there are loading restrictions on long haul flights.
Based on the results of the 2010 investment tender, the airport is managed by Master-Avia, which has entered into a 49-year lease agreement for the airport property. According to the company, during this time it has invested more than $ 50 million in the creation of new airport infrastructure and is still using all available resources to pay off the loan. The beneficiaries of the company, according to the unified state register of legal entities and individual entrepreneurs, are Vasyl Khmelnytsky and Kostrzhevsky.
In March 2019, Khmelnytsky said that his UFuture business group owns 90% of the shares of Master-Avia LLC, another 10% in the company belongs to Khmelnytsky’s partner Denys Kostrzhevsky.
Master-Avia owns terminals and the apron, and the airfield and the runway are on the balance sheet of municipal enterprise Kyiv International Airport (Zhuliany).

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