Business news from Ukraine

STATE-CONTROLLED UKRGASBANK ISSUES $14.5 MLN FOR BUILDING NEW TERMINAL AT ZAPORIZHIA AIRPORT

State-controlled Ukrgasbank (Kyiv) has issued $13 million and UAH 42.8 million for the construction of a new terminal at Zaporizhia airport, the financial institution’s press service has told Interfax-Ukraine. According to the report, the total cost of building the new terminal amounted to UAH 1.085 billion.
“Further borrowing needs from the borrower have not been announced at the moment,” the press service of Ukrgasbank said.
As reported, in December 2019 Zaporizhia completed the construction of a new airport terminal and in March 2020 they plan to open it for passengers.
Ukrgasbank was established in 1993. The state represented by the Ministry of Finance owns 94.94% of the shares of the financial institution.
Ukrgasbank ranked fourth among 76 banks operating in the country on October 1, 2019 in terms of total assets (UAH 114.133 billion), according to the National Bank of Ukraine.

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DNIPRO AIRPORT INCREASES PASSENGER TRAFFIC BY 13.2%

Dnipro Airport in 2019 increased passenger traffic to 338,888 people, which is 13.2% more than in 2018 (299,250).
According to the airport’s website, passenger traffic on international flights last year amounted to 198,190 people, on domestic flights some 140,698 people.
In December 2019, the airport passenger flow was 2.8% more than the figure for the same month of 2018 and amounted to 20,253 people.
As reported, Head of Dnipropetrovsk Regional State Administration Oleksandr Bondarenko at the end of November 2019 said that the construction of a new airfield of the international airport in Dnipropetrovsk region will begin in the summer of 2020. The new international terminal and VIP terminal in a single complex will be built by the Ukrainian industrial and financial group DCH. It is planned that it will have a high throughput of up to 1,000 people/hour.
The total cost of the project is $180 million.

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PASSENGER TRAFFIC AT LVIV INTERNATIONAL AIRPORT INCREASES BY 38.8% IN 2019

Passenger traffic at Lviv International Airport in 2019 amounted to 2.217 million people, which is 38.8% more than in 2018, the company’s press service said on Facebook.
The number of flights in 2019 reached 18,963 (16,180 international and 2,783 domestic), which is 22.9% more than in 2018.
In December 2019, some 171,600 passengers used the airport services (151,400 on international flights, 20,200 on domestic flights), which is 32.4% more than in December 2018. At the same time, the number of flights last month increased by 10.9%, to 1,423 (1,178 international and 245 domestic).
As reported, Lviv Airport in 2018 increased passenger traffic by 48% compared to 2017, to 1.598 million people.
Lviv International Airport is located 6 km south of the city center.

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CABINET OF MINISTERS OF UKRAINE DECIDES NOT TO FINANCE PRYDNIPROVYA AIRPORT

The Cabinet of Ministers of Ukraine has decided not to finance designing and building the Prydniprovya airport in favor of designing and building the Dnipropetrovsk airport (both are located in Dnipropetrovsk region), according to government resolution No. 1010 dated December 4, 2019 posted on the government’s website.\
“To recognize government resolution No. 536 dated June 19, 2019 approving the procedure for using the funds provided for in the national budget for the design and construction of the Prydniprovya Airport in Dnipropetrovsk region to be invalid,” the document says.
As reported, state-owned enterprise (SOE) Financing of Infrastructure Facilities announced a new tender for the development and examination of the construction of the Dnipropetrovsk airport.
The regional administration and a private investor will work on the airport project as well. Using the government funds, a 3.2 km runway equipped with modern navigation systems, meteorological and light-signaling equipment will be built. The new international terminal and a VIP terminal in a single complex will be built by Ukraine’s DCH industrial and financial group. It is planned that it will have a high throughput – up to 1,000 people per hour.
The total project cost is UAH 4.8 billion.

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UKRAINE AND SLOVAKIA APPROVE CONDITIONS FOR USE OF UZHGOROD AIRPORT

Ukraine and Slovakia have approved the contents of the agreement determining the conditions of the use of airspace of Slovakia at the Uzhgorod international airport, the Infrastructure Ministry of Ukraine has reported on its website.
The parties discussed the provisions of the intergovernmental agreement determining the conditions of the use of part of the airspace of Slovakia for the provision of air traffic services by a certain Ukrainian air navigation services prov
ider at the Uzhgorod airport and agreed on the draft version of the agreement.
“Prior to signing by officials authorized by the respective governments, the agreement is subject to domestic approval procedures in accordance with the procedures for the formal functioning of international agreements that exist in each country,” the ministry said.
Minister Vladyslav Krykliy said that the Ukrainian side would ensure the passage of domestic approval procedures as quickly as possible and hoped for the same actions by the Slovak side. м
He also said that during the visit of Slovak President Zuzana Čaputová to Ukraine on September 16, 2019, the heads of state confirmed the need to intensify the work of the parties in order to conclude the relevant agreement as soon as possible.

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KYIV AIRPORT EXPECTS RISE IN PASSENGER TRAFFIC IN 2020

Kyiv Zhuliany International Airport intends to serve 2.6 million passengers in 2019, which is more than 7% less than in 2018, Denys Kostrzhevsky, the head of the airport’s board of directors, has said. “I won’t say that we have a catastrophic decline in growth rates. Compared to last year, when we transported almost 2.8 million people, this year we expect to service 2.6 million passengers. That is, the decrease in passenger traffic will be about 8%. I even won’t call it a fall, it’s an adjustment. In 2018, Kyiv airport showed an explosive growth – we grew by 52% compared to 2017. This year there will be a drop in passenger traffic. This is not a catastrophic drop,” he said in an interview with Interfax-Ukraine.
At the same time, he noted that in 2020 passenger traffic growth is expected.
“The airline’s plans for scheduled flights are quite conservative and long-term. At present, we already know the airline’s plans for spring-summer navigation, until October 2020,” he added.
According to forecasts announced at the international conference Global Airport Development in Dublin (Ireland), in the medium term the growth rate of passenger traffic in the world will be 5-8% per year.
“In Ukraine, the market is underestimated and underdeveloped due to low purchasing power … We have been slowing down for a long time and now we must catch up with the world figures for the number of flying citizens per capita. All this is closely connected with state policy. If the economic and political situation in the country allow saying that business and the economy are developing steadily, household incomes are growing, respectively, and aviation growth will be large,” he said.

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