Business news from Ukraine

LVIV AIRPORT HAS 46% RISE IN PASSENGER TRAFFIC

The Lviv international airport in January-October 2018 saw a 46.3% rise in passenger traffic, to 1.343 million people, the airport has reported on its official Facebook page.
According to the airport, in October 2018, 138,500 passengers took advantage of air transportation (119,900 international, and 18,600 domestic), which is 43.4% more than in October 2017 (96,600).
The number of flights made in October reached 1,355 (1,117 international, and 238 domestic), which is 28% more than in October last year (1,101).
The number of flights in January-October increased 28%, to 12,900 from 10,100.
The new terminal complex of the Lviv airport, built for Euro 2012, was put into operation on April 12, 2012. The new terminal with a total area of 39,000 square meters has nine boarding gates, 28 check-in desks, two self-registration kiosks, 18 passport control points and 12 points for aviation security.
The main international routes served by the airport are: Warsaw, Istanbul, Munich, Vienna, Baku, Thessaloniki, Madrid, Rome, Tel Aviv, Bologna, Radom, Iraklion, Minsk and Burgas.

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UKRZALIZNYTSIA TO ELECTRIFY TRACK SECTION FROM KYIV TO BORYSPIL AIRPORT

PJSC Ukrzaliznytsia is holding talks about the electrification of the track section from Kyiv to the Boryspil International Airport, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said on the sidelines of the event devoted to the final stage of the selection of projects at Future of Mobility Lab.UZ edition on October 29.
According to him, in case of passenger traffic growth, the company plans to add a diesel train produced by Kriukov Car Building Works on the Central Railway Station – Boryspil Airport route.
“Depending on the demand in the project launch process, we are planning to increase the number of trains and cars of trains. We have an agreement with the KCBW [Kriukov Car Building Works] for the supply of diesel trains. Perhaps they will be exploited in this section in the future, if there is a demand,” he said.
According to Kravtsov, the project’s payback period is 9-10 years, and the planned load during the first year should be at least 80% of the capacity.
“Now we are coordinating the schedule, since after the launch of this express train, the section between Darnytsia and Boryspil will be one of the most stressful in Ukraine, especially considering the large number of passengers, including commuter traffic. We plan that in the first stages of launching the frequency in the peak hours will be about 30-40 minutes, in non-peak hours – 40 minutes or an hour and a half,” Kravtsov said.
He also said that now Ukrzaliznytsia is discussing the need for night trains with the airport – the need for such trips is being discussed, taking into account the small number of night flights from the airport.
The train will be launched by the end of November, but there is no exact date yet, since there are a number of remarks from Prime Minister Volodymyr Groysman, which should be taken into account, Kravtsov said.
He also said that negotiations are now being completed with the State Aviation Service of Ukraine and UkSATSE regarding the electrification of the section from Kyiv to Boryspil.
“As soon as this is done, it will simplify the issue of using various types of trains on this route,” he said.

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UKRZALIZNYTSIA TO LAUNCH EXPRESS TRAIN TO BORYSPIL AIRPORT

PJSC Ukrzaliznytsia in November 2018 will launch an express train to the Boryspil international airport (Kyiv region).
“In February was the project, in May – the start of works, and in October – a test launch of the train. In November it will be the launch of the express train,” Prime Minister of Ukraine Volodymyr Groysman said on his Twitter account on Thursday.
The prime minister said that the cost of the project was about UAH 580 million, recalling that the estimated cost of the “infamous Air Express” in 2010 amounted to UAH 3.2 billion.
Groysman also pointed out the convenience of creating a covered gallery between the airport terminal and express platform.
As reported, Transportation on the Kyiv city-the Boryspil international airport route could reach 3.8 million passengers in 2019, according to Ukrzaliznytsia. The company expects that with a ticket price of UAH 80 the payback period for the project will near 10 years. Ukrzaliznytsia does not deny the scenario of increasing the cost of travel, depending on the demand for the service, as well as the factors that negatively affect its production cost for the company.
The estimated travel time will be 35-40 minutes.

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KYIV SIKORSKY AIRPORT PLANS TO BOOST PASSENGER TRAFFIC BY 30% NEXT YEAR

Kyiv Sikorsky International Airport (Zhuliany) in 2019 plans to boost passenger traffic by 25-30% compared with the current year, when it plans to serve 2.6 million people. “We plan passenger traffic will grow by about 25-30% next year from the current level,” Chairman of the airport’s Board of Directors Denys Kostrzhevsky said at a conference at the airport. The previously announced forecast for 2018 set at 2.8 million passengers was reduced because flydubai (the UAE) had switched flights to another airport while the density of the schedule of Estonia’s Nordica had decreased.
As reported, Kyiv Sikorsky International Airport plans to complete the reconstruction and expansion of its main Terminal A from 14,000 to 23,500 square meters by until May 2019. The project is estimated at UAH 630 million.
Kyiv Sikorsky International Airport 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 being 21,000 square meters. The airport’s runway is able to handle B-737 and A-320 aircraft.
In the nine months of 2018, the airport serviced 2.165 million passengers, which was 57.3% up on January-September 2017. In September 2018 alone, passenger traffic grew by 30.6%, to 307,500 people.

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BUSINESSMAN VASYL KHMELNYTSKY’S UFUTURE GROUP TO INVEST IN RECONSTRUCTION OF KYIV SIKORSKY AIRPORT’S TERMINAL UAH 630 MLN

Businessman Vasyl Khmelnytsky’s UFuture Group plans to complete the renovation and expansion of Terminal A, which is the main terminal of Kyiv Sikorsky International Airport (Zhuliany), from 14,000 to 23,500 square meters by May 2019, the project is estimated at UAH 630 million.
“We are building a new [terminal] not to increase the number of passengers, but to create comfort for those who fly,” the businessman said at a press conference on Thursday, explaining that often one time slot at the airport can be shared by seven low-cost airlines.
He says the airport’s throughput capacity, which is about 700 people per hour, can double.
Construction works at the airport began two months ago, Chairman of the airport’s Board of Directors Denys Kostrzhevsky said. The runway will not be closed for the period of the works at the terminal.
“The existing runway is good enough, its warranty is valid. We are not going to overhaul it, sometimes we fix something, improving some processes,” Khmelnytsky said.
Both own reinvested funds of the managing company and loans are the source of financing of the works, Kostrzhevsky said.
Khmelnytsky says that the payback period of investment in the expansion of Terminal A is expected to be from eight to nine years. UFuture invested more than UAH 2.5 billion in the airport’s complex in seven years.
He also said that he was considering the possibility of building a low-priced hotel and hangars next to Terminal A, but it might happen no earlier than the end of its reconstruction.
“Our resources are not unlimited. First, we will build the terminal. I hope we will launch it. It will give us a little more income, and we will make estimates proceeding from this,” Khmelnytsky said.
UFuture Investment Group, headquartered in Brussels, was established in autumn 2017 and united the business projects of Vasyl Khmelnytsky. The group includes the Ukrainian development company UDP, whose specialization is the implementation of large infrastructure projects. In addition, the conglomerate united businesses in such areas as UDP Renewables, the Bila Tserkva industrial park, the innovation parks UNIT.City, and LvivTech.City.
Kyiv Sikorsky International Airport 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 being 21,000 square meters. The airport’s runway is able to handle B-737 and A-320 aircraft.
In the nine months of 2018, the airport serviced 2.165 million passengers, which was 57.3% up on January-September 2017. In September 2018 alone, passenger traffic grew by 30.6%, to 307,500 people.
Master-Avia LLC began managing the airport after winning a tender in 2010 and leasing airport property for 49 years.
Khmelnytsky and Kostrzhevsky are the beneficiaries of Master-Avia LLC, according to the state register of legal entities of entrepreneurs, are businessmen. Master-Avia indicates it owns terminals and the apron, while the airfield and the runway are on the balance sheet of municipally owned Kyiv International Airport (Zhuliany).

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PASSENGER FLOW AT ZAPORIZHIA AIRPORT FALLS BY 13% IN SEPT

The Zaporizhia international airport in September 2018 saw a 13% fall in passenger flow year-over-year, to 36,000 people.
Director of the airport Viktor Biskupsky told Interfax-Ukraine that along with the seasonal decrease in activity, the reason for the decline in passenger traffic was the annulment of regular flights in Ukraine by Atlasjet Ukraine, the annulment of flights to Batumi and Tel-Aviv by Ukraine International Airlines (UIA), and the switch to lower capacity planes by airlines on domestic flights (in particular, by UIA).
At the same time, he said that all domestic flights from Zaporizhia are fully filled.
According to the information on the website of the Zaporizhia International Airport, on domestic flights the decline in passenger traffic was 23% (7,300 people), on international flights – 10.4% (2,400 people).
In general, in January-September-2018, the passenger traffic at the Zaporizhia airport amounted to 297,500 people, almost 19% more than last year. On domestic flights, growth was 12.7% – to almost 71,000, on international flights – by 20.9%, to 226,600.
The number of aircraft departures, according to the airport, amounted to 2,434 and increased by 16.5% over the same period last year.

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