13:04 13.01.2015

Boryspil airport should develop by using non-aviation revenues, says ministry

2 min read
Boryspil airport should develop by using non-aviation revenues, says ministry

The commission of the Infrastructure Ministry of Ukraine on January 12 presented the results of its analysis of Boryspil international airport’s operation (Kyiv), to the airport's employees.

"Boryspil airport has many problems; a large sum of money has been invested in the airport which should be serviced. Thanks to credits we managed to host Euro-2012, but now the credits are used inefficiently, and the airport's managers have not paid attention to non-aviation revenues. Boryspil airport has a large potential in this," reads the report, citing Infrastructure Minister Andriy Pyvovarsky.

First Deputy Minister Volodymyr Shulmeister said that the commission analyzed the airport’s operation over the past six years, comparing its key indicators with the indicators of leading international airports, and pointed out areas where the airport has problems. The airport does not have a clear development strategy, and has inefficient construction and procurement, a fall in operation and financial indicators, law profits, ineffective revenues structures and increased expenses, problems with working capital, dangerous level of credit burden, etc.

"First, the company should increase revenues from non-aviation operations, thanks to which all airports in the world are functioning. This is trade and catering, additional services – laundry, taxis and advertisement. In the future this will work on increasing the number of flights, transit transportation and cargo handling. The airport also should optimize operation expenses and the structure of management, and switch to high-quality budgeting of expenses and finance management," Shulmeister said.

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