Business news from Ukraine

Business news from Ukraine

UKRAINIAN MOTOR SICH AIRLINE CANCELS MOST FLIGHTS FROM KYIV TO ODESA AND LVIV

Motor Sich airline cancels most flights from Kyiv to Odesa and Lviv, focusing on flights from Zaporizhia to Kyiv and Minsk (Belarus).
According to the airline’s Facebook page, flights to Kyiv will be operated twice a day, to Minsk four times a week.
The airline said flights from Kyiv to Odesa and Lviv were canceled from November 9 to December 20. At the same time, the number of flights from Zaporizhia to Kyiv and Minsk doubles.
Motor Sich airline is a structural subdivision of PJSC Motor Sich (Zaporizhia), an enterprise developing, manufacturing, repairing and servicing aircraft gas turbine engines for airplanes and helicopters, as well as industrial gas turbine units.
Currently, the airline operates a fleet of nine aircraft, carrying out regular passenger international and domestic flights, passenger and cargo charter flights, as well as special flights that support the operations of the main company.
The airline’s base airport is Zaporizhia International Airport.

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INFRASTRUCTURE MINISTRY OF UKRAINE MULLING CONCESSION OF LVIV AIRPORT

Infrastructure Ministry of Ukraine is mulling the possibility of concession of the Lviv airport, Infrastructure Minister Vladyslav Krykliy said on the sidelines of the RE:think. Invest in Ukraine forum opened in Mariupol on Tuesday.
“Among the state-run airports, we have only two – Boryspil and Lviv. It is more rational to talk first about the Lviv concession,” the minister said.
He said that the Boryspil airport already has its own development strategy, which it is now successfully implementing on its own, and this also needs to be taken into account.
“Concession has a very simple formula. If a project is troubled or unprofitable, it can be transferred to a concessionaire under very favorable conditions for obligations to increase traffic, and other things. If this is a profitable activity, as in the case of the Boryspil [airport], the issue is ambiguous, because the Boryspil [airport] grows on average in passenger traffic by 15-20% annually… If an investor is ready to take on obligations to increase passenger traffic two or three times faster, then it is already possible to speak about it. But I am not sure that someone will undertake such obligations,” Krykliy said.
As reported, in September, the Infrastructure Ministry of Ukraine announced that it was preparing pilot projects for the transfer of regional airports to concession.

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HUNGARIAN LOW COST WIZZ AIR LAUNCHES FLIGHTS FROM LVIV TO LARNACA

Hungarian low cost Wizz Air launches flights from Lviv to Larnaca
The Hungarian low cost airline Wizz Air on Monday, October 28, launched direct flights from Lviv to Larnaca (Cyprus).
According to the airline’s reservation system, flights will be operated twice a week on Mondays and Fridays. The flight duration is three hours.
The cost of one-way ticket without baggage is UAH 709.
As reported, from March 2020 Wizz Air launches flights from Zaporizhia to Gdansk, Wroclaw, Krakow (all based in Poland), Vienna (Austria), Vilnius (Lithuania), and Budapest (Hungary).
Wizz Air, the largest low cost carrier in Central and Eastern Europe, offers flights on more than 600 routes from 25 bases, connecting 145 destinations in 44 countries. The airline fleet consists of 120 Airbus A320 and Airbus A321 aircraft.

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EUROPEAN INVESTMENTBANK TO PROVIDE EUR 450 MLN FOR CONSTRUCTION OF LVIV NORTHERN BYPASS

The European Investment Bank (EIB) has approved the provision of a credit line of EUR 450 million to finance the construction of Lviv Northern bypass and the rehabilitation of sections of M-05 highway in Cherkasy, Kirovohrad, Mykolaiv and Odesa regions in Ukraine.
According to the report of the bank, its Board of Directors approved the project on October 15, 2019.
The EIB said that the investments will improve the quality of the extended TEN-T network (Trans-European Transport Network) by creating safer road conditions and reducing environmental pollution. In addition, the Lviv Northern bypass will shorten travel time and divert traffic from the city of Lviv.
The bank said that the EIB will require the Promoter to ensure that any procurement procedures are done in accordance with the Bank’s Guide to Procurement and the relevant applicable EU public procurement rules.
According to the report, the total cost of the framework project is around EUR 1.05 billion. Other sources of financing are not disclosed.
As reported, the European Bank for Reconstruction and Development (EBRD) and JSC Ukrzaliznytsia intended on October 21, 2019 to announce tender procurement of materials for modernization of TEN-T tracks for $100 million raised by the company from the bank.

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UKRAINIAN LOW COST AIRLINE SKYUP STARTS FLIGHTS FROM KYIV TO LVIV

Ukrainian low cost airline SkyUp (Kyiv) on October 17 launched Kyiv-Lviv flights.
The press service of the airline reported that before October 26, 2019, the flights will be operated twice a week – on Thursdays and Sundays. From October 27, the number of flights will increase to four per week – on Mondays, Tuesdays, Fridays and Sundays. The cost of a ticket without baggage starts from UAH 508.
“Today, we have launched flights between two Ukrainian cities with million population – Kyiv and Lviv… We will continue further developing internal flights, because this is one of the priority areas of our strategy,” the press service of SkyUp airlines said, citing CEO Yevhen Khainatsky.
In addition, SkyUp said that also on October 17, 2019, Kharkiv-Lviv flights were launched.
SkyUp Airlines LLC was registered in Kyiv in June 2016. The founder is ACS-Ukraine LLC of Tetiana and Yuriy Alba, who also own JoinUp! tour operator.

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PAPER AND BOARD COMPANY FROM LVIV SEES 9% RISE IN PRODUCTION

Paper and Board Company (Lviv), the producer of packaging cardboard tubes and hygienic paper products, in January-August 2019 saw a 9% rise in production year-over-year, to UAH 421.6 million. According to the Ukrpapir association, the company increased production of base paper for hygienic paper products by 15% over the period, to 4,480 tonnes, production of box cardboard fell by 3.4%, to 15,700 tonnes.
Toilet paper output grew by 8.5%, to 2.7 million rolls.
Paper and Board Company was established in 1946 on the basis of the production facilities of a small mechanical plant. Currently it produces goods and semi-finished products from waste paper (cardboard sheets, corners, tubes) and pulp paper (toilet paper, towels, napkins).
The company exports its products, in particular to Poland, Germany, France, Austria, Italy, Portugal and Romania.

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