Boryspil Airport plans to downsize



The airport

Boryspil Airport plans to downsize

06/13.2020 14:05


This year, Boryspil International Airport plans to reduce the workforce by 700 people due to declining airport revenues due to the stopping of scheduled flights.

This was stated by the director general of the state-owned Boryspil International Airport Pavel Ryabikin at a press conference on June 13 at the airport, answering a question from a correspondent from Ukrinform.

“Regarding the reductions, we entered the crisis with a quantitative composition of 3,700 people, yesterday that number was 3,350 people, if I’m not mistaken. About 350 are vacancies, those who terminated the agreement, retirees. It was the first wave. We are now preparing a structural change, which will lead to a reduction in the number of employees, and we expect to reach the figure of approximately 3,000 employees this year. This is what is in our plans and what meets market expectations, ”said Ryabikin.

He also noted that after air travel was banned in mid-March during those three months at Boryspil airport, there were still expenses necessary to support the activities, but they had managed to be reduced by about half.

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“I can boast of having managed to reduce fixed costs during the quarantine from 300 million UAH per month to 120 million per month,” said Ryabikin.

The airport manager also said that the airport had received an additional line of credit, which allowed him to pay a reduced salary at the rate of 2/3 of the rate.

He added that Boryspil has received from a number of banks a modification of the conditions of existing credit lines, which also allow the orientation of previously opened investment credit lines towards the implementation of “circulating” expenditure.

“From the point of view of our operational preparation for carrying out activities, we have no problem. From the point of view of our profitability and profitability in the future, it is very difficult to build plans. It is clear that with an increase in the attraction of loans, we have much more to spend to pay off these obligations in the future. In other words, our profitability will certainly drop, and as far as the rate of revenue recovery is concerned, it will depend on the rate of recovery of passenger traffic, “he said.

Ryabikin added that according to forecasts from international aeronautical organizations, the flow of passengers in late 2019 around the world may resume by the end of 2023.

The airport manager noted that aviation is very globalized and it is difficult to say how quickly Ukrainian aviation will recover.

As reported, the government of March 12 introduced quarantine in Ukraine to combat the spread of COVID-19 coronavirus infection.

In particular, commercial establishments have been closed, with the exception of grocery stores, pharmacies, petrol stations and banks. The works of the Kiev, Kharkov and Dnipro metros have been stopped, the circulation of land transport in cities, interurban and interregional services of automobile, railway and aviation has been stopped.

Since March 28, Ukraine has completely closed the border for scheduled flights, including aviation.

Now in Ukraine, by June 22, adaptive quarantine is in effect.

At the same time, the Cabinet of Ministers decided to resume domestic aviation in Ukraine from June 5 and international air links from June 15.

According to the materials:



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