Business news from Ukraine

KYIV SIKORSKY AIRPORT SERVICES AROUND 1.5 MLN PASSENGERS IN JAN-JULY

Kyiv Sikorsky International Airport (Zhuliany) in January-July 2018 serviced around 1.5 million passengers, according to a posting on the official Facebook page of the airport. “On August 1, 2018, the airport serviced a 1.5 millionth passenger since the beginning of the year. The figure is indicative. It indicates the rapid and confident development of the airport. In August 2017, Hlib Deineha became the millionth passenger, he was then 3.5 years old,” the airport said. The press service said that the airport plans to service 2.8 million passengers by the end of 2018.
Kyiv International Airport (Zhuliany) is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In Q1 2018, the airport serviced 442,000 passengers, which is 50.4% more than in Q1 2017.
Kyiv International Airport belongs to UFuture Investment Group founded by the Ukrainian entrepreneur Vasyl Khmelnytsky. UFuture consolidates the group’s businesses and social projects and coordinates its business development and investor relations activities on national and international levels. The group incorporates a major Ukrainian real estate development company UDP, Kyiv Sykorsky International Airport, national Ukrainian outdoor advertising operator RTM, and Bila Tserkva Industrial Park. Additionally, the conglomerate develops new and innovative businesses, such as renewable energy generator UDP Renewables, pharmaceutical producer Biopharma, and innovation parks UNIT.City and LvivTech.City. UFuture’s headquarters is located in Brussels. The group estimates its assets at $ 750 million. Vasyl Khmelnytsky is a founder of annual Kyiv International Economic Forum (KIEF), IT school “UNIT Factory”, Lean Institute Ukraine (LIU), and School of Small and Medium Enterprises.

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POLTAVA AIRPORT SERVICES FIRST FLIGHT AFTER RECONSTRUCTION

The Poltava international airport has serviced the first flight after reconstruction, First Deputy Head of Poltava Regional Administration Andriy Pesotsky has written on his Facebook page. “We have serviced the first flight after the reconstruction of the airport. Citizens of the United States, Canada, China and Europe arrived. They are not simply tourists, but bloggers and all those interested in aviation… I am proud that we have set the airport in order and now we can service flights both from other cities, and foreign flights,” he said.
According to the regional news portal Poltava News, the first flight of the airport is domestic, and a few dozen of foreign tourists flew from Zaporizhia by Yak-40 plane. As reported, on January 31, 2017, Poltava Regional Council adopted a program to develop and support the Poltava airport for 2017-2020 with the total cost of UAH 351 million. On December 20, 2017, the Cabinet of Ministers of Ukraine granted the status of the international airport to the Poltava airport.

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STATEMENT BY MASTER-AVIA COMPANY ABOUT NABU INVESTIGATION IN RELATION TO INTERNATIONAL KYIV SIKORSKY AIRPORT

On June 14, 2018, the administrative buildings and terminals of Kyiv International Airport named after Igor Sikorsky was blocked by National Anti-corruption Bureau of Ukraine (NABU) personnel equipped with automatic weapons. From 10:00 a.m. on June 14 to 05:00 a.m. on June 15, during the 19 hours, the management of municipally owned Kyiv International Airport and the Master-Avia company, including the heads of departments, and senior employees, were kept in their own offices without any means of communication and the possibility of coordinating the work of the airport. As a result, the work of both the municipal company and the Master-Avia private company, which is engaged in the development and maintenance of the airport, was blocked.
NABU’s operation resulted in the inability to prevent an accident that occurred with a plane operated by the BRAVO airlines, which performed the Antalya-Kyiv flight. During landing amid a violent storm, the airplane carrying 169 passengers aboard overshot runway and landed on its belly. The situation was complicated by the increased threat of an explosion: there were four tonnes of aviation fuel on board, there was a threat to the lives and health of the passengers. At that time, the airport’s management, which was, in fact, hostage to the security forces, was not able to take measures that are appropriate to that weather condition. Only thanks to the coordinated work of the airport’s rescue services, the situation was under control and nobody was injured as a result of the incident. This was the first case registered within 94 years of the airport’s work.
The airport’s management did not publish the details of the incident before because of the investigation of the aviation event by a special commission. However, as there is a probability that raids and other investigative measures may continue, the team of Kyiv International Airport considers it is their duty to warn that in case of new attempts to block the airport’s work by the security forces, it will suspend handling flights for the sake of the safety of passengers and crews. The safety of passengers remains a priority for the company.
Currently, the airfield and runway are on the balance sheets of municipally owned International Airport Kyiv. Master-Avia owns terminals and an apron. There was no reason for the use of force: the company’s activities are open and transparent, the management is always ready for constructive interaction with the control authorities and for required procedures. However, instead of asking for the necessary documentation, the Bureau’s agents chose a different path – the seizure of buildings, keeping the management and personnel without means of communication, searches both at the airport and in apartments in the top managers, seizure of documents and things, including personal ones, the blocking of activity and communications in the strictly policed security facility. Such actions by state authorities negatively affect the airport’s safety and the investment attractiveness of Ukraine.
Kyiv International Airport operates strictly in accordance with international and Ukrainian legislation and today it is one of the largest taxpayers in the capital among municipally owned enterprises. Master-Avia has invested more than $50 million in the creation of new airport infrastructure, and still spends all available resources on the repayment of a loan and the development of the only international airport located directly in Kyiv.
Reference information:
In 2010, an investment tender was held under the government program for the development of Ukrainian aviation infrastructure Master-Avia LLC won the tender. The company has concluded an agreement for the lease of the airport’s property for 49 years. The second bidder, a company with Russian roots, unsuccessfully challenged the results of the tender in courts of all instances.
Today, Kyiv International Airport, being operated by Master-Avia, cooperates with more than 40 airlines, performing flights to 140 cities in 48 countries. Every month, about 2,500 flights are operated, and almost two million passengers are served annually. Investment in the airport exceeds $50 million. More than 10,000 jobs have been created. Kyiv International Airport is the second largest taxpayer among municipally owned companies.

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MONTHLY PASSENGER FLOW AT KHARKIV INTERNATIONAL AIRPORT EXCEEDS 100,000 PEOPLE

In June 2018, passenger flow of the Kharkiv international airport totaled 114,600 people, which is 38% up year-over-year.
The press service of the airport reported that this is a record breaking figure for the airport – first its monthly passenger flow exceeded 100,000 people.
The most popular destinations in June were Istanbul (Pegasus, Turkish Airlines), Kyiv (UIA), Warsaw (LOT), Tel Aviv (UIA), Dortmund (WizzAir), Minsk (Belavia), Milan (UIA), Batumi (Myway Airlines, Yanair), Katowice (WizzAir), Tbilisi (Myway Airlines) and Lublin (Bravo Airways).
In May 2018, passenger flow of the airport was 88,900, which is 5% more than a year ago (84,400). The share of passengers on international flights was 80%.
Total passenger flow of the airport in January-June 2018 totaled 440,200 people, which is 21% more than a year ago (364,100 people).
Kharkiv airport has a runway 2,500 meters long and 50 meters wide. There are two passenger terminals with the capacity of 100 and 650 people on its territory.
DCH manages the airport through New Systems AM.

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GOVERNMENT PLANS TO BUILD KYIV-BORYSPIL AIRPORT RAILWAY

The Cabinet of Ministers of Ukraine has approved a project on organization of passenger traffic between Kyiv city and the Boryspil international airport. It will take 13 months and a half to implement the project, which cost is UAH 583.238 million (in the prices as of May 2, 2018). According to the document, which has been sent to Interfax-Ukraine, construction works would cost UAH 428.478 million, equipment and furniture – UAH 37.755 million and other expenses – UAH 117 million.
The total exploitation length of the section between Kyiv Pasazhysky station and Boryspil airport is 37.4 km. The project is divided into two stages. The cost of the first stage is UAH 502.947 million. It is planned to build 3.7 km of railway track, one new stop and a flyover railway line of 272 meters long in six months.
In addition, two passenger platforms with open-door passenger shelters near Terminal D of the airport and an open-door gallery between the passenger shelter and Terminal D of 150 meters long.
The cost of the second stage is UAH 80.291 million. A new stop, a high passenger platform near the flyover railway line of 160 meters longs will be built in seven months and a half.

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RYANAIR STUDYING POSSIBILITY OF CREATING SERVICING CENTER IN BORYSPIL AIRPORT – INFRASTRUCTURE MINISTER

Ukraine, in particular the Boryspil international airport, have good opportunities for creating an aircraft servicing site in the conditions of a shortage of these services in Europe, and the largest European low cost airline Ryanair showed its interest in these opportunities, Ukrainian Infrastructure Minister Volodymyr Omelyan has said.
“In Europe, all slots are booked for two years ahead,” he said at a meeting in the European Business Association (EBA) on Thursday.
Omelyan said that in the middle of July representatives of Ryanair will arrive in Kyiv and they will get acquainted with the site for the possible placement of this center.
In his opinion, there are enough specialists in Ukraine to provide these services, in particular, these are new opportunities for Antonov State Enterprise.
At the same time, the minister said that there are barriers to the creation of this servicing center, in particular, the legislation sets high duties on the import of spare parts.
Ryanair CEO Michael O’Leary in May this year said that the airline is considering the possibility of opening of Ukraine’s own data center, and in the long term it is also interested in the opening of the center for servicing aircraft in Ukraine. An examination of the regulation of these activities in Ukraine, including by the European authorities, should be conducted.

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