Business news from Ukraine

BORYSPIL INTERNATIONAL AIRPORT PLANS TO BUILD CARGO TERMINAL NEXT YEAR EVEN IF NO INVESTOR FOUND

State-owned enterprise (SOE) Boryspil International Airport plans to start building a cargo terminal in 2019 even if no investor is found, Director Pavlo Riabikin said at the Global Outlook 2018 conference organized by the European Business Association (EBA) in Kyivy. According to him, the existing cargo infrastructure of the Boryspil airport was formed in the late 1960s – early 1970s and it was designed to handle about 40 tonnes of cargo per day. “Today we process 110-120 tonnes of cargo a day, which is very problematic with the existing infrastructure,” Riabikin said.
According to him, in the past four years there has been a lot of talk about attracting investors and creating an investment project for the construction of a cargo terminal at the airport, but due to the fact that the state has few mechanisms for attracting investors to infrastructure projects, this has not been realized.
“Next year, if the ministry [the Infrastructure Ministry] fails to attract an investor, we plan to build a new cargo terminal based on existing capacities, but we will implement it using own forces. To be honest, the volumes of investment that we need in coming years make the implementation of the cargo terminal very difficult,” the head of the enterprise said.
Riabikin said that the project for the construction of the cargo terminal is not a profile for the airport, since the company is oriented, first of all, to passenger transportation.
“I think we are able to implement it [the construction of the cargo terminal] during a year and a half. The only question is whether we have the funds or the opportunity to attract them,” Riabikin said.

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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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CARGO TERMINAL AT BORYSPIL AIRPORT WILL BE LAUNCHED IN 2018-2019 – INFRASTRUCTURE MINISTER

There is a high probability that as early as 2018 a new cargo terminal will be launched at Boryspil International Airport, Minister of Infrastructure Volodymyr Omelyan has said following talks with a large international air cargo operator hold on June 20.
“It is realistic: next year it should be launched,” he said at a meeting at the European Business Association in Kyiv.
The minister explained that there are three options for implementing this project: in one of the terminals of Boryspil airport, on the location of Ukroboronprom or one of private land sites adjacent to the airport.
According to him, the company with which the negotiations were conducted plans to study all these possibilities. Omelyan did not reveal its name. He estimated the amount of investment in the project at $30-100 million depending on the stages of its launch.
The minister said the demand for these services in Ukraine has grown exponentially over the past five years.
“There is actually no cargo terminal at Boryspil. Only Ukrposhta loaded its capacity,” the minister said.
According to him, if two years ago the airport handled one tonne of cargo, now it is 160 tonnes a day.

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PARKING AREA CONSTRUCTION IN BORYSPIL AIRPORT TO BE COMPLETED IN AUGUST

Contractor NAN LLC (Kharkiv) plans to complete construction of a parking area near Terminal D of the Boryspil International Airport (Kyiv) in August 2018, First Deputy Director General of the airport Yevhen Dykhne has told Interfax-Ukraine.
“The contractor expects to complete the work in August, which will be the first stage of the parking area for more than 1,000 cars,” he said on the sidelines of a forum dedicated to cybersecurity in Kyiv on Tuesday.
He also said that the airport allocated UAH 440 million for the implementation of this project at this stage.
“Further we will consider the efficiency of this parking area, how much it is necessary to continue the second stage of the parking area in the short term, because the number of parking lots in the project is designed with a large margin,” he said.

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BORYSPIL AIRPORT SERVICES 53,000 PASSENGERS DURING CHAMPIONS LEAGUE FINAL IN KYIV

The Boryspil airport has serviced a record number of passengers during the final of the UEFA Champions League in Kyiv – almost 53,000 people. “On that day we serviced 52,599 passengers, which is the absolute record in the history of the Boryspil airport. For comparison, we had 38,000 passengers during the Euro-2012 final. Last year we once hit the mark of 40,000 passengers,” Director General of the airport Pavlo Riabikin said at a press conference in Kyiv on Wednesday.
He said that on May 26, the airport serviced 31 charter flights with 6,393 fans of Real and fans of Liverpool used 40 flights (8,822 passengers). There were three flights with official delegations of the King of Spain, the prime minister of Gabon and the president of the Czech Republic, and 72 flights were additionally serviced. Riabikin said that the airport additionally earned UAH 31.5 million of net profit on that day.

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BORYSPIL AIRPORT ACCEPTS AND DISPATCHES ALL ADDITIONAL CHARTER FLIGHTS, 22% MORE BUSINESS JETS TO CHAMPIONS LEAGUE FINAL

Boryspil Airport (Kyiv region) on May 25-26 accepted and dispatched all 77 additional charter flights (100% of the plan) and 73 business flights, which is 21.6% more than the estimated number of flights agreed for transportation of fans to the holding of the UEFA Champions League final in Kyiv on May 26.
“Some 77 charter flights and 73 business flights were accepted on May 25-26. This number does not include regular flights, only those with fans,” airport spokeswoman Tetiana Yarosh said.
She also said that initially it was planned to accept only 60 business jets.
According to the expert, all these planes departed from Kyiv at 07:00 a.m. on Sunday, May 27, without incidents.
As reported, Boryspil airport planned to accept and dispatch 77 additional charter flights on May 25-27 in connection with the holding of the Champions League final match in Kyiv.
At the same time, Kyiv airport almost quintupled the number of accepted business jets in connection with the Champions League final match.

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