Business news from Ukraine

PASSENGER FLOW IN KYIV SIKORSKY INTERNATIONAL AIRPORT MORE THAN DOUBLES IN 2018

The Kyiv Sikorsky International Airport in January-October 2018 serviced 2.42 million passengers, which is 56.3% more than a year ago. “November 13, the Kyiv airport serviced the 2.5 millionth passenger since the beginning of 2018… The plans of the airport are to service 2.8 million passengers in 2018,” the airport said in a press release on Wednesday. Passenger flow increased 64.2%, to 1.85 million. According to the report, in October this year, passenger traffic increased 48.6% from October of last year, to 259,100 passengers.
The airport said that 2.35 million passengers were serviced on international flights in January-October of this year, and only 73,000 passengers on domestic flights, including 251,600 and 7,500 respectively in October.
The number of flights increased 32.9% in January-October 2018, to 25,900, of which international ones made up 21,880. In October, the increase in the number of flights was 27%, to 2,720, including 2,270 international flights.
According to the release, the most popular international destinations in January-October 2018 were Minsk (Belarus), Warsaw (Poland), Sharm el-Sheikh (Egypt), Dubai (the United Arab Emirates), Antalya (Turkey), Ankara (Turkey), Rome ( Italy); internal – Odesa, Zaporizhia, and Lviv.

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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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KYIV SIKORSKY INTERNATIONAL AIRPORT SERVICES 1.5 MLN PASSENGERS

Kyiv Sikorsky International Airport (Zhuliany) in January-July 2018 serviced around 1.5 million passengers, according to a posting on the official Facebook page of the airport. “On August 1, 2018, the airport serviced a 1.5 millionth passenger since the beginning of the year. The figure is indicative. It indicates the rapid and confident development of the airport. In August 2017, Hlib Deineha became the millionth passenger, he was then 3.5 years old,” the airport said.
In July, the airport serviced 351,000 passengers, which is 59.4% more than in July 2017; including 342,200 on international flights and 8,800 passengers on domestic flights. The number of flights in July 2018 was 3,328 for the arrival and departure, which is 34.1% more than the same period in 2017; of which 2,874 international flights and 454 domestic flights. The most popular international destinations in July 2018 were Antalya (Turkey), Sharm-El-Sheikh (Egypt), Minsk (Belarus), Warsaw (Poland), Ankara (Turkey), Batumi (Georgia), Tivat (Montenegro); internal – Odesa, Zaporizhia and Lviv.
In January-July 2018, the Kyiv airport serviced 1.5 million passengers, which is 64.8% more than in January-July 2017; of them 1.45 million passengers on international flights and 49,500 passengers on domestic flights.
The number of flights in January-July 2018 amounted to 16,834 for the arrival and departure, which is 38% more than the same period of 2017, of them 14,182 international flights and 2,652 domestic flights. The most popular international destinations since the beginning of 2018 have been Minsk (Belarus), Dubai (UAE), Antalya (Turkey), Ankara (Turkey), Warsaw (Poland), Rome (Italy), Budapest (Hungary); internal – Odesa, Zaporizhia and Lviv.
The press service said that the airport plans to service 2.8 million passengers by the end of 2018.
Kyiv International Airport (Zhuliany) 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 is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In Q1 2018, the airport serviced 442,000 passengers, which is 50.4% more than in Q1 2017.

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KYIV SIKORSKY AIRPORT SERVICES AROUND 1.5 MLN PASSENGERS IN JAN-JULY

Kyiv Sikorsky International Airport (Zhuliany) in January-July 2018 serviced around 1.5 million passengers, according to a posting on the official Facebook page of the airport. “On August 1, 2018, the airport serviced a 1.5 millionth passenger since the beginning of the year. The figure is indicative. It indicates the rapid and confident development of the airport. In August 2017, Hlib Deineha became the millionth passenger, he was then 3.5 years old,” the airport said. The press service said that the airport plans to service 2.8 million passengers by the end of 2018.
Kyiv International Airport (Zhuliany) 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 is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In Q1 2018, the airport serviced 442,000 passengers, which is 50.4% more than in Q1 2017.
Kyiv International Airport belongs to UFuture Investment Group founded by the Ukrainian entrepreneur Vasyl Khmelnytsky. UFuture consolidates the group’s businesses and social projects and coordinates its business development and investor relations activities on national and international levels. The group incorporates a major Ukrainian real estate development company UDP, Kyiv Sykorsky International Airport, national Ukrainian outdoor advertising operator RTM, and Bila Tserkva Industrial Park. Additionally, the conglomerate develops new and innovative businesses, such as renewable energy generator UDP Renewables, pharmaceutical producer Biopharma, and innovation parks UNIT.City and LvivTech.City. UFuture’s headquarters is located in Brussels. The group estimates its assets at $ 750 million. Vasyl Khmelnytsky is a founder of annual Kyiv International Economic Forum (KIEF), IT school “UNIT Factory”, Lean Institute Ukraine (LIU), and School of Small and Medium Enterprises.

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STATEMENT BY MASTER-AVIA COMPANY ABOUT NABU INVESTIGATION IN RELATION TO INTERNATIONAL KYIV SIKORSKY AIRPORT

On June 14, 2018, the administrative buildings and terminals of Kyiv International Airport named after Igor Sikorsky was blocked by National Anti-corruption Bureau of Ukraine (NABU) personnel equipped with automatic weapons. From 10:00 a.m. on June 14 to 05:00 a.m. on June 15, during the 19 hours, the management of municipally owned Kyiv International Airport and the Master-Avia company, including the heads of departments, and senior employees, were kept in their own offices without any means of communication and the possibility of coordinating the work of the airport. As a result, the work of both the municipal company and the Master-Avia private company, which is engaged in the development and maintenance of the airport, was blocked.
NABU’s operation resulted in the inability to prevent an accident that occurred with a plane operated by the BRAVO airlines, which performed the Antalya-Kyiv flight. During landing amid a violent storm, the airplane carrying 169 passengers aboard overshot runway and landed on its belly. The situation was complicated by the increased threat of an explosion: there were four tonnes of aviation fuel on board, there was a threat to the lives and health of the passengers. At that time, the airport’s management, which was, in fact, hostage to the security forces, was not able to take measures that are appropriate to that weather condition. Only thanks to the coordinated work of the airport’s rescue services, the situation was under control and nobody was injured as a result of the incident. This was the first case registered within 94 years of the airport’s work.
The airport’s management did not publish the details of the incident before because of the investigation of the aviation event by a special commission. However, as there is a probability that raids and other investigative measures may continue, the team of Kyiv International Airport considers it is their duty to warn that in case of new attempts to block the airport’s work by the security forces, it will suspend handling flights for the sake of the safety of passengers and crews. The safety of passengers remains a priority for the company.
Currently, the airfield and runway are on the balance sheets of municipally owned International Airport Kyiv. Master-Avia owns terminals and an apron. There was no reason for the use of force: the company’s activities are open and transparent, the management is always ready for constructive interaction with the control authorities and for required procedures. However, instead of asking for the necessary documentation, the Bureau’s agents chose a different path – the seizure of buildings, keeping the management and personnel without means of communication, searches both at the airport and in apartments in the top managers, seizure of documents and things, including personal ones, the blocking of activity and communications in the strictly policed security facility. Such actions by state authorities negatively affect the airport’s safety and the investment attractiveness of Ukraine.
Kyiv International Airport operates strictly in accordance with international and Ukrainian legislation and today it is one of the largest taxpayers in the capital among municipally owned enterprises. Master-Avia has invested more than $50 million in the creation of new airport infrastructure, and still spends all available resources on the repayment of a loan and the development of the only international airport located directly in Kyiv.
Reference information:
In 2010, an investment tender was held under the government program for the development of Ukrainian aviation infrastructure Master-Avia LLC won the tender. The company has concluded an agreement for the lease of the airport’s property for 49 years. The second bidder, a company with Russian roots, unsuccessfully challenged the results of the tender in courts of all instances.
Today, Kyiv International Airport, being operated by Master-Avia, cooperates with more than 40 airlines, performing flights to 140 cities in 48 countries. Every month, about 2,500 flights are operated, and almost two million passengers are served annually. Investment in the airport exceeds $50 million. More than 10,000 jobs have been created. Kyiv International Airport is the second largest taxpayer among municipally owned companies.

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