The government is preparing Ukrainian airports for privatization, and it wants to spend UAH 13.5 billion in state budget funds on them in the next ten years while an additional UAH 4 billion is expected to be invested by private investors during this period. Forbes.ua reported this, citing the concept for the state program for development of Ukrainian airports until 2023.
In particular, the Cabinet of Ministers intends to private the six largest state-owned airports in the country - Boryspil, Lviv, Donetsk, Odesa, Kharkiv, and Simferopol. In addition, the concept provides for granting concession on operation of passenger and cargo terminals or leasing them out. The ownership of communal aerodromes and runways will remain unchanged.
Ukrainian aerodrome complexes, including smaller regional ones, are expected to be modernized with state budget funds in in the next 10 years. Private businesses are expected to be involved in modernization of infrastructure (terminals and catering facilities), non-aviation facilities, and small aerodromes that are used for the needs of the aviation industry and sports aviation. The latter include the Kyiv/Antonov-1, Dzhankoy, and Kyiv (Chaika) aerodromes.
According to the concept’s projections, the passenger traffic at Ukrainian airports will increase 2.3 times to 28.7 million people in 2023, compared with 2011, after its implementation. This is 2.5 times lower than the previous concept’s projection (back in 2008, the relevant ministry projected the passenger traffic at 70.6 million in 2020).
According to the concept, low-cost airline companies should account for half the volume of air transport in Ukraine in 2023. The Ministry of Infrastructure is also hoping that the share of airports’ revenues from non-aviation operations will rise to 60% of their total revenue over the ten years. By comparison, non-aviation operations accounted for less than 20% of the Boryspil airport’s revenue in 2011.
