Business news from Ukraine

INVESTMENT IN RESTORATION OF BILA TSERKVA AIRPORT WILL BE EUR 59 MLN

The reform support team at the Ministry of Infrastructure of Ukraine has reported on the results of a preliminary feasibility study for a project to restore the runway and build a terminal at Bila Tserkva airport with an estimated investment of EUR59 million. “Getting the status of international by Bila Tserkva has already been initiated, which is expected next year. The Ministry of Infrastructure of Ukraine provides comprehensive support and assistance in realizing the potential of the Bila Tserkva aerodrome, which is provided for by the Aviation Strategy of Ukraine until 2030,” adviser to the relevant minister Oleksandr Klitin said.
The report also states that the reform support team has already held talks on the development of the airport based on the results of the feasibility study with Finpoint, Millennium Capital, Capital Times and the airport management.
The feasibility study for the airport of Bila Tserkva was developed by independent international consultants under the technical assistance program of the European Commission for Ukraine. According to the evaluation of experts from the ASSIST project, the total cost of priority investments to restore the runway and build the terminal will be about EUR59 million. The modernization of Bila Tserkva aviation complex is a pilot project of this program. ASSIST is a research project co-funded by the European Commission DG MOVE under FP7 (the EU’s Seventh Framework Program for Research). The ASSIST project has been lasting for more than 30 months, starting in April 2011. Scientific research is carried out by a consortium of six partners with the participation of NEA (the Netherlands), TRT (Italy), ProgTrans (Switzerland), FOMTERV (Hungary), CNRS-LET (France), and Fraunhofer-ISI (Germany).

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KHARKIV AIRPORT RAISES PASSENGER TRAFFIC

Passenger traffic at Kharkiv International Airport in November 2018 was 72,700 people, which is 19% more than in the same period of 2017.
According to the press service of the airport, the largest demand last month was for flights to Kyiv, Istanbul, Warsaw, Katowice, Dortmund, Gdansk, Wroclaw, Tel Aviv, and Minsk.
The airport also reported that in 2019 four new directions will be opened from Kharkiv to Odesa, Krakow, Rome, and Milan.
As reported, in October 2018 passenger traffic from Kharkiv airport was 82,900 people, which is 22% more than in the same period of 2017.
In 2017, the airport increased passenger traffic to 806,100 people (in 2016 this figure was 599,700 people). In 2018, it is planned to increase it by another 12% (up to 900,000 people).
Kharkiv Airport has a runway with a length of 2,500 meters and a width of 50 meters. It has two passenger terminals with a capacity of 100 and 650 people per hour.

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LVIV AIRPORT SEES 47% RISE IN PASSENGER FLOW

The Lviv International Danylo Halytsky Airport in January-November 2018 increased passenger flow by 47.1% year-over-year, to 1.468 million people, the airport has reported on its official Facebook page.
At the same time, the number of flights in January-November 2018 increased 28.3%, to 14,148 (11,000 a year ago).
According to the results of the airport in November 2018, 124,900 passengers (109,100 international and 15,800 domestic) took advantage of the air traffic, which is 57.1% more than in November 2017 (79,500).
The number of flights serviced in November reached 1,235 (1,035 international and 200 domestic), which is 31.4% more than in November last year (940).
As reported, the Lviv airport in January-October 2018 increased passenger traffic by 46.3%, to 1.343 million people.
Lviv International Danylo Halytsky Airport is located 6 km south from the city center.
The main international routes serviced by the airport are Warsaw, Istanbul, Munich, Vienna, Baku, Thessaloniki, Madrid, Rome, Tel Aviv, Bologna, Radom, Iraklion, Minsk, and Burgas.

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EXPRESS TRAIN FROM KYIV TO BORYSPIL AIRPORT IS LAUNCHED

JSC Ukrzaliznytsia will send the round-the-clock express train on the Kyiv-Passazhyrsky-Darnytsia-Boryspil-Airport route to make its first trip. “The regular train trips are to start at 13:00,” the company’s press service reported. Four rail buses produced by Polish Pesa Bydgoszcz SA with a capacity of up to 120 passengers and with a baggage zone, upgraded by Ukrzaliznytsia, will run on the route. Tickets costing UAH 80 can be purchased by cash at two cash desks at the Central and South Railway Stations, by noncash at four self-service terminals installed in the concourse over the fourteenth track. Also, passengers can pay for travel directly in the trains using a technology similar to the Kyiv subway.
The cost of the project, according to the press service, amounted to UAH 480 million.
“In the course of the implementation of the project, about 4 km of track was added to the existing railway infrastructure, a 272 meter long overpass was built over the M03 Kyiv-Kharkiv highway. Two passenger platforms with pavilions near the airport and an indoor pedestrian crossing from the platforms to Terminal D of the Boryspil airport were built, Ukrzaliznytsia said on its website.
Under the project two waiting rooms with air conditioning, TV, sockets, Wi-Fi and a children’s area were also built. Passengers can enter the indicated zones is open if they have a ticket for the express train. As reported, on November 29, Ukrzaliznytsia announced the timetable of the express train to the Boryspil International Airport with 30 trips in each direction.
Ukrzaliznytsia plans to transport about 3.8 million passengers along the route Kyiv-Boryspil International Airport in 2019 and is negotiating the electrification of the section of the route from Kyiv to the Boryspil International Airport.

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STATE-OWNED BORYSPIL AIRPORT PLANS TO RECONSTRUCT SECOND RUNWAY

State-owned enterprise (SOE) Boryspil International Airport plans to start reconstruction of maneuvering area No. 2 in 2020 under a memorandum signed with Chia Communications Construction Company (CCCC) and relaunch it in 2021.
“The reconstruction works will be paid for using the loan and partly at the expense of the company’s own funds. The Chinese Eximbank can issue a government-secured loan. Financing rates with government guarantees are much lower than commercial ones and do not require additional expenses from the airport,” Commercial Director of the airport Heorhiy Zubko told Interfax- Ukraine.
He said that the Chinese company, at its own expense, prepared and submitted a pre-feasibility study of the project to the airport under the memorandum signed by the airport and CCCC. According to Zubko, the airport has already prepared its comments on the draft pre-feasibility study, which CCCC should resolve before the end of the year, after which negotiations on financing will be held with the bank.
“The procurement procedure was not carried out and the Boryspil airport did not spend the company’s money and the budget,” he said, adding that the construction proposal had been put forward by the Chinese side.
Zubko does not report on the final cost of the reconstruction project, since it will be known only at the final design stage.

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PASSENGER FLOW IN KYIV SIKORSKY INTERNATIONAL AIRPORT MORE THAN DOUBLES IN 2018

The Kyiv Sikorsky International Airport in January-October 2018 serviced 2.42 million passengers, which is 56.3% more than a year ago. “November 13, the Kyiv airport serviced the 2.5 millionth passenger since the beginning of 2018… The plans of the airport are to service 2.8 million passengers in 2018,” the airport said in a press release on Wednesday. Passenger flow increased 64.2%, to 1.85 million. According to the report, in October this year, passenger traffic increased 48.6% from October of last year, to 259,100 passengers.
The airport said that 2.35 million passengers were serviced on international flights in January-October of this year, and only 73,000 passengers on domestic flights, including 251,600 and 7,500 respectively in October.
The number of flights increased 32.9% in January-October 2018, to 25,900, of which international ones made up 21,880. In October, the increase in the number of flights was 27%, to 2,720, including 2,270 international flights.
According to the release, the most popular international destinations in January-October 2018 were Minsk (Belarus), Warsaw (Poland), Sharm el-Sheikh (Egypt), Dubai (the United Arab Emirates), Antalya (Turkey), Ankara (Turkey), Rome ( Italy); internal – Odesa, Zaporizhia, and Lviv.

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