Business news from Ukraine

PRIVATE INVESTOR MULLING POSSIBILITY OF BUILDING INTL AIRPORT IN UKRAINIAN REGION ZHYTOMYR

Head of Zhytomyr Regional Administration Vitaliy Bunechko reported on the ongoing work with a private investor who is seriously considering the issue of building an international airport in Zhytomyr as a public-private partnership.
“In order for the airport to work within the framework of the international airport, it is necessary to complete the construction of the runway. To complete it, we need UAH 360 million. What are we doing in this direction? A certain land plot has been transferred to the city. We are now very actively working with the private investor who is seriously considering the construction of the international airport within a public-private partnership. The idea is even to make a cargo hub here to unload Kyiv, the Zhuliany and Boryspil airports, to make a hub here to fly here and send cargo across Ukraine,” he said in an exclusive interview with Interfax-Ukraine.
Speaking about road construction, Bunechko said that since the beginning of his work as head of the regional administration in August 2019, he was skeptical about whether the Chinese contractors would be in due time with the construction of a ring road around Zhytomyr, since they violated all the deadlines.
“But the pace with which they are now making the road, and the kilometers of the road that are already there, all this gives hope and optimism,” he said.
Bunechko said that the region now has a new approach to regional roads, and not “patching up” roads.
“When I reported to the president about my first 100 days of work, I said that there would be 90 km of roads, he asked: “Are you going to build roads in 10 years?” We have a network of 7,000 km. He said that we need to look for opportunities. I want to say today it is 140 km of regional roads, which are already being repaired, despite all the obstacles that were in the antimonopoly committee. We have overcome them, we have completely tendered all our 53 highway points, all roads are being repaired. There are some roads that have already been completed, now they will be put into operation, it remains to obtain permits,” he said.
The governor said that the most critical sections of roads were selected throughout Zhytomyr region, and soon everyone will feel that the roads are being built.

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CONSTRUCTION OF CARGO TERMINAL AT BORYSPIL AIRPORT TO START IN AUTUMN

The construction of a cargo terminal at Boryspil International Airport (Kyiv region) is scheduled to begin this fall, the press service of the European Business Association (EBA) has said, following a meeting of Deputy Infrastructure Minister Oleh Yuschenko and airport representatives.
According to the EBA, with reference to the Ministry of Infrastructure, design work is currently underway to prepare for the construction of the cargo terminal, for which additional land plots have already been allocated. Provided that all preparatory work is completed on time, construction will begin in the fall and should be completed 16 months later.
“Thus, according to optimistic estimates, Boryspil airport will receive a new cargo terminal by the end of 2021,” the report says.
The association notes that the construction of the terminal will be carried out at the expense of attracted credit funds, which, according to representatives of Boryspil airport, have already been previously agreed upon. In turn, the Ministry of Infrastructure is negotiating, in particular, with Asian countries on attracting additional transit flows and is working on simplifying document flow.
“The business community approves such news, because logistics companies have long been awaiting the implementation of this project. The association’s logistics committee includes companies that transport goods, including by air, in international traffic and within Ukraine. Business representatives have a significant share in freight flow, which passes, in particular, through the cargo terminal of Boryspil airport,” the EBA said.
One of the main reasons that currently hinder the development of air cargo transportation in Ukraine, the association calls the worn-out infrastructure of the cargo terminal of Boryspil airport, since the structure of the terminal and its capacity have remained unchanged for many years. In this regard, problems regularly arise during the transportation of goods, especially in winter, when due to bad weather the airport cannot cope with the volume of load, the association explained.

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KYIV INTERNATIONAL AIRPORT WILL FIRE 50% EMPLOYEES

Kyiv International Airport named after Sikorsky has started a phased reduction of its employees, amid the crisis in the aviation industry due to the coronavirus pandemic, the airport’s press service has said. Currently, the airport division is deciding whom of the employees to dismiss and how to optimize the operation of the enterprise.
“We predict a slow recovery in demand for air travel and expect a return to the pre-quarantine level in only a few years. We cannot survive on our own without support from the state. Unfortunately, we will have to fire 50% of the staff, including highly qualified specialists of the industry,” director general of Master-Avia management company Oleh Levchenko said.
The airport also stressed that the problem was also aggravated by a lack of reaction and assistance from the government, the relevant ministry and Kyiv authorities, despite the fact that the airport management had repeatedly appealed to the authorities for help.
In total, according to the enterprise, about 2,000 people work at the airport and Master-Avia. Another 8,000 employees work in related enterprises that cooperate with the airport.
Kyiv Airport is the second Ukrainian airport in terms of passenger traffic.

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UKRAINIAN PRESIDENT INSPECTS RECONSTRUCTION OF KHERSON AIRPORT

Ukrainian President Volodymyr Zelensky during a working trip to Kherson region has inspected the reconstruction progress at the Kherson International Airport.
“The head of state was informed that an investment project had begun in 2019 to ensure aircraft landing in the evening and at night, as well as in difficult weather conditions. The project has received over UAH 46 million from the State Regional Development Fund and more than UAH 5 million of regional development funding. The project’s implementation has already been funded by more than UAH 11 million. The opening of the airport’s updated lighting system is scheduled for September this year,” the presidential press service said on Friday.
In addition, the regional airport development program for 2018-2020 is currently being implemented. Routine runway repairs have been carried out, workers have been trained to launch the Kherson-Krakow flight, and additional equipment has been acquired to improve the quality of passenger service. The Ukrainian State Air Traffic Services Enterprise also decided to update landing systems at the airport in 2020.
“All this will allow the airport to get the first category of aircraft landing according to International Civil Aviation Organization (ICAO) standards,” the report says.
Head of Kherson Regional State Administration Yuriy Husiev stressed that the airport is strategic.
“In the south, this is one of the very important hubs, and I would like it to become a hub for flights from Mykolaiv, Kherson regions. Even from Zaporizhia they come to us because Ryanair launched very popular flights,” he said.
At the same time, the question remains of reconstructing the runway, updating the fleet of aircraft.
Infrastructure Minister Vladyslav Krykliy said the total cost of the full restoration of the runway is UAH 1.2-1.5 billion, and UAH 910 has been spent on it this year. He added with the president’s support the amount of funding may be increased this year.

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UKRAINE INTERNATIONAL AIRLINES INSTALLS CORONAVIRUS LABORATORIES AT BORYSPIL INTERNATIONAL AIRPORT

Ukraine International Airlines (UIA) has installed the first laboratory for PCR and antibody tests at Boryspil International Airport (Kyiv region).
UIA President Yevhen Dykhne said on Facebook that now the laboratory will be used to test UIA crews, however, it will also be able to provide for the needs of departing or arriving passengers, if the arrival country requires a corresponding certificate.
“For example, Tunisia, with which air traffic will soon be restored, allows free border crossing with the availability of a PCR test,” he added.
Dykhne said that a PCR test currently has the highest specificity and sensitivity, in contrast to rapid tests. The material for analysis is a throat swab, and the analysis takes three hours. At the same time, a possible simultaneous loading of the laboratory is 96 samples.
In addition, he said the laboratory also provides for the option of an urgent PCR test of one individual sample within 40 minutes and testing for antibodies to SARS-CoV-2, which allows to determine the earlier infection and the presence of immunity (the test material is blood from a vein, the speed is 86 tests per hour).

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AIRPORT “KYIV” BEGINS TO ACCEPT INTERNATIONAL PASSENGER FLIGHTS

International airport “Kyiv” named after Sikorsky began to accept international passenger flights, the airport’s website said in a statement.
The airport launches only eight flights out of 28 flights on June 17: Belavia flight to Minsk, Wizz Air flights to Dortmund, Budapest, London (Luton), Memmingham, Tallinn and Copenhagen, as well as Motor Sich flight to Zaporizhia. The airport also receives eight flights on arrival on Wednesday.
Only four flights out of 28 are available for departure in the schedule for June 18, and eight flights are available for arrival.

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