Ukraine’s Infrastructure Ministry has decided to postpone corporatization of state-owned enterprise (SOE) Boryspil international airport, Director General Pavlo Riabikin said at a press conference at the airport on Thursday.
“There is no final government decision on the corporatization of the Boryspil airport, but at the level of the Infrastructure Ministry, during all consultations that lasted about six months, we decided to set aside the issue of corporatization and stay at the level of implementing corporate governance at the airport,” he said.
According to Riabikin, the issue of corporatization does not have a final decision today: the problem is that the main part of the property of the Boryspil airport belongs to the category of property that cannot be included the charter capital and cannot be privatized – this is, first of all, the entire airfield. If we compare the cost of these facilities with what can be transferred as part of the corporatization – the ratio is about three to one, the director of the airport said.
He said that, in theory, this can be solved by a separate law, as it was done with Ukrzaliznytsia, or by introducing elements of corporate governance, leaving now the status of SOE.
“Corporatization with such a large amount of property that does not enter the enterprise will necessitate the creation of two enterprises, one of which will manage the part of the property that cannot be privatized, the second – the terminals. And in the future, this may create problems, for example, attraction of loans from European financial institutions,” the director of the airport said.
At the same time, he said that the enterprise needs such a body as a supervisory board.
On May 22, the Cabinet of Ministers of Ukraine approved the composition of the supervisory board of the Boryspil airport, consisting of three independent members and two state representatives.
State-owned enterprise (SOE) Boryspil International Airport (Kyiv region) plans to repay UAH 3.6 billion of debt under a state-secured loan of the Japan Bank for International Cooperation (JBIC) received 10 years ago to build Terminal D in accordance with the issue terms.
“It remains for us to pay the Japanese bank UAH 3.6 billion at the current hryvnia exchange rate, which was attracted to build Terminal D. We paid about 20%,” Deputy Director General for Economics and Finance of the Boryspil airport Kyrylo Zvonarev said at a press conference at the airport on Thursday.
According to him, the total amount of the loan at the current exchange rate is almost UAH 5 billion and approximately UAH 1.4 billion was paid. He also said that according to the payment plan, the airport will repay the loan before 2032.
“Twice a year we have to pay approximately UAH 150 million,” the deputy director said.
At the same time, Zvonarev expressed concern that setting a rate of transfer to the national budget of the company’s net profit at 90% could put at risk the repayment of the said loan.
The Boryspil international airport (Kyiv) in January-April 2019 increased passenger flow by 17.2% from a year ago, to 3.81 million, the press service of the airport has told Interfax-Ukraine.
At the same time, the passenger traffic on international flights amounted to 3.493 million people (growth by 18.3%), on domestic – 316,800 (growth by 6.5%).
In general, in January-April, the airport serviced 30,559 flights (an increase of 10.1%), including 26,480 international and 4,079 domestic.
For the first four months of 2019, on regular flights, the Boryspil airport serviced 3.142 million people (a rise of 22% over the same period in 2018), on irregular flights – 667,790 people (at the level of the same period last year).
The number of transfer passengers since the beginning of 2019 amounted to 964,760, which is 6.2% higher than the figure for the same period of 2018. The share of transfer passengers in the total passenger traffic was 25.3% (a decrease of 2.7 percentage points).
In April of this year, the passenger traffic of Boryspil amounted to 1.155 million people, which is 22.4% more than in April last year.
Passenger flow on international flights in April was 1.07 million passengers (an increase of 24.7%), on domestic flights – 84,800 (a decrease of 0.6%).
In general, in April, the airport served 8,661 flights (an increase of 14.7%), including 7,592 international and 1,069 domestic.
The government committee has approved the concept for the development of Boryspil International Airport until 2045, providing for investments in the amount of EUR3.4 billion and the increase in passenger traffic to 54 million passengers per year (today 12 million passengers/year). According to the concept of the airport’s development, the text of which is available to Interfax-Ukraine, it is planned that the airport will be able to service 14.4 million passengers in 2019, some 27.7 million passengers in 2030, some 44.3 million passengers in 2040, and about 53.9 million passengers in 2045.
To achieve the objectives of the concept until 2021, it is planned, in particular, to reconstruct the second runway, extend the finder and the apron of Terminal D to the south, reconstruct the cargo terminal, and build a new office center.
The Boryspil International Airport (Kyiv region) increased passenger flow by 15.2%, to 2.65 million people, in January-March 2019 compared to the same period in 2018, the company’s press service told Interfax-Ukraine.
Some 2.42 million passengers used international flights (growth by 15.7%) and 232,100 passengers used domestic flights (growth by 9.3%).
The airport serviced 21,898 flights during the period under review (growth by 8.3%), including 18,888 international and 3,010 domestic flights.
During the first three months of 2019 the airport received and sent 2.24 million passengers on regular flights (22% more compared with Q1, 2018) and 415,900 passengers on unscheduled flights (11% less compared with Q1, 2018).
The airport serviced 670,840 transfer passengers in January-March 2019, which is 5.8% more than during the same period in 2018. Transit passengers accounted for 25.3% of the total passenger flow.
In March 2019, the Boryspil airport serviced 964,240 passengers, which is 15.6% more than during the first three months of 2018.
In March, 881,500 passengers used international flights (growth by 15.9%) and 82,700 passengers used domestic flights (growth by 12.2%).
In March, the airport serviced 7,648 flights (growth by 8.1%), including 6,582 international and 1,066 domestic flights.
Boryspil International Airport is the main airport of Ukraine, occupying a total area of about 1,000 ha. The airport has two runways: one with a length of 4,000 meters and a width of 60 meters, and the second with a length of 3,500 meters and a width of 63 meters. Four passenger terminals, postal and cargo handling complexes are located on the territory of the airport.
Terminal F has been launched at Boryspil International Airport (Kyiv), according to the Interior Ministry.
“Already from the beginning of the operation of Terminal F, the border guards of the separate checkpoint Kyiv registered one flight for arrival and five for departure. In addition, the border guards ensured proper clearance of 200 citizens who arrived in the country, and 720 citizens who have already left,” the ministry said on Facebook.
In total, 44 servicemen of the State Border Service were attracted for border clearance in the renewed terminal.
As reported, the Ministry of Infrastructure wants to introduce preferences for air navigation services for Boryspil airport.
