Business news from Ukraine

UKRAINIAN AIRPORTS SEE 18.5% RISE IN PASSENGER FLOW IN 2019

Ukrainian airports tentatively serviced 24.337 million passengers in 2019, which is 18.5% more than in 2018.
According to a posting on the website of the State Aviation Administration of Ukraine, the passenger flow on it routes grew by 19.8%, to 21.996 million people.
The administration said that in 2019, Ukrainian airlines serviced 13.722 million people, which is 9.5% more than in 2018. A total of 12.56 million passengers were carried on international routes (growth by 9.7% compared with 2018).
Last year, Ukrainian airlines performed 102,600 commercial flights (an increase of 2.4% compared to 2018), including 86,200 international one (an increase of 2.6%).
As reported, in 2018 the passenger flow of Ukrainian airports amounted to 20.546 million people, which corresponds to a 24.5% increase compared to 2017.

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PASSENGER FLOWS AT UKRAINIAN AIRPORTS GROW BY 19% IN JAN-OCT

Passenger flows at the Ukrainian airports in January-October 2019 grew by 18.8% year-over-year, to 20.745 million people. According to recent update on the website of the State Aviation Service, in particular, passenger flows on international routes grew by 20.1%, to 18.766 million.
Volumes of passenger traffic of Ukrainian airlines increased 10.3%, to 11.923 million people. (on international routes by 10.5%, to 10.943 million people).
During January-October 2019, Ukrainian airlines operated 88,400 commercial flights (an increase of 3.4%), including 74,600 international (growth by 3.5%).
As reported, Ukrainian airlines transported about 12.5 million passengers in 2018, which is 18% more than in 2017. Passenger traffic through the country’s airports increased 25% in 2018, to 20.55 million people.

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ZELENSKY: WE WILL BUILD AIRPORTS IN UKRAINE

The issue of building airports is a priority for 2020, according to Ukrainian President Volodymyr Zelensky.
“We will build an airport in Dnipro. We are not postponing anything: we will build airports in 2020. And not only in Dnipro,” he said during a press marathon in Kyiv on Thursday.
According to the head of state, funds for the construction of an airport in Dnipro may not be available in the current draft national budget, since the document has not yet been finalized and all amendments have not been made to it.
“We agreed that we are one team, and we will discuss the final budget together with the Minister of Finance and the Prime Minister. They have not yet come to me with the final budget,” Zelensky said.
The president also said that a report from an independent commission on the construction of a bridge in Dnipro was almost ready. In a week, he plans to get it and consider it, after which he will be ready to talk about this construction project with Dnipro City Mayor Borys Filatov.

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BORYSPIL AIRPORT’S CORPORATIZATION POSTPONED

Ukraine’s Infrastructure Ministry has decided to postpone corporatization of state-owned enterprise (SOE) Boryspil international airport, Director General Pavlo Riabikin said at a press conference at the airport on Thursday.
“There is no final government decision on the corporatization of the Boryspil airport, but at the level of the Infrastructure Ministry, during all consultations that lasted about six months, we decided to set aside the issue of corporatization and stay at the level of implementing corporate governance at the airport,” he said.
According to Riabikin, the issue of corporatization does not have a final decision today: the problem is that the main part of the property of the Boryspil airport belongs to the category of property that cannot be included the charter capital and cannot be privatized – this is, first of all, the entire airfield. If we compare the cost of these facilities with what can be transferred as part of the corporatization – the ratio is about three to one, the director of the airport said.
He said that, in theory, this can be solved by a separate law, as it was done with Ukrzaliznytsia, or by introducing elements of corporate governance, leaving now the status of SOE.
“Corporatization with such a large amount of property that does not enter the enterprise will necessitate the creation of two enterprises, one of which will manage the part of the property that cannot be privatized, the second – the terminals. And in the future, this may create problems, for example, attraction of loans from European financial institutions,” the director of the airport said.
At the same time, he said that the enterprise needs such a body as a supervisory board.
On May 22, the Cabinet of Ministers of Ukraine approved the composition of the supervisory board of the Boryspil airport, consisting of three independent members and two state representatives.

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UKRAINE ENDING VISA APPLICATION FOR FOREIGNERS IN AIRPORTS FROM JAN 1

Ukraine from January 1, 2019 will stop issuing visas on arrival for foreign citizens at international airports, said State Secretary of the Ministry of Foreign Affairs of Ukraine Andriy Zayats.
“From January 1, the issuance of visas at international airports will cease and the functionality of the electronic visa will expand,” Zayats told the Kyiv-based ezine LB.ua.
According to him, the Foreign Ministry acknowledged that the issuance of visas at the airport is neither modern nor effective, since some foreigners do not speak English, and some foreigners do not have a banking card, with which they can pay the consular fee.
In 11 months of 2018, about 35,000 visas have been issued at the airports of Ukraine.
Zayats said that the functionality of the electronic visa will now be expanded by increasing the number of states whose citizens will be able to issue it, adding that the list of purposes to be issued an e-visa is expanding.
“Now the purpose is only a tourist or business trip. From January 1, treatment and private trips to visit relatives are added to this. Visas for journalists are added. So, we block almost all non-immigration types of travel with electronic visas,” the diplomat said.
He said that the e-visa fee will be set at $85 from January 1, while the consular fee for entry into Ukraine will be set at $65.

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INFRASTRUCTURE MINISTRY SEEKS TO CREATE FIVE AVIATION HUBS, 20 INTL AIRPORTS IN UKRAINE BEFORE 2030

The Infrastructure Ministry of Ukraine plans to create 50 airports in Ukraine, five of which will be international aviation hubs, and 20 more will service international flights.
“In the aviation industry, we see the creation of 50 airports throughout Ukraine. We are not talking about 50 Boryspil airports. We talk at least about five international hubs, at least 20 airports that will provide international communication, as well as about 20 that will be service flights to the regions,” Minister of Infrastructure Volodymyr Omelyan said at the presentation of the Ukrainian transport strategy until 2030 on Thursday evening.
According to him, the average time, which should take to reach an airport from anywhere in the country, should be reduced to one hour.
As for the development of the aviation industry, it is planned to open 350 destinations for flights from all airports in Ukraine.
Earlier, Omelyan announced the creation of two new airlines in Ukraine.

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