WHAT THE AVIATION INDUSTRY OF UKRAINE REALLY NEEDS
The aviation industry consists of two basic things: airlines and airports. If the airlines are investors, first of all, the manufacturers of aircraft, Boeing and Airbus – because their main asset is the fleet – the airports are investors in the economy of the country in which they are located. Investments in airports remain in the country forever and serve the citizens, in particular by offering high-quality infrastructure, wrote Denis Kostrzhevsky, chairman of the board of directors of Kyiv Sikorsky International Airport, whose majority shareholder is UFuture holding, in a blog for LIGA.Net.
"Today you invested in new aircraft, and tomorrow the investment climate in the country has changed or there is external aggression – and the aircraft flew away. Foreign airlines do not even invest in Ukrainian staff. Instead, airports are investing in both Ukrainian staff and Ukrainian infrastructure," the head of the airport said.
Investing in airport infrastructure should be one of the top priorities of aviation policy, he added. And it can be done in different ways: for public, municipal and private funds.
"There may be more private funds, but we need to create the right conditions," he said.
Creating attractive conditions for investment
Airport infrastructure is extremely expensive: it requires large investments, the payback period of which should be extended in time – by 20-30 years usually. Aviation fees should be clear and fair, covering not only current expenses but also investor contributions. Finally, the aviation industry needs transparent conditions for attracting investment.
"When transparent rules for investors appear in Ukraine, a competitive environment is formed, and guarantees of return on investment are enshrined in law, then we will say that the conditions have been created to attract investment. And then, I'm sure, there will be much more investment. A private investor will be willing to invest money, seeing the prospect of return at a profit. Then it will be possible to attract large investments in airport infrastructure," said Denis Kostrzhevsky.
Read the full version of the blog on the aviation industry of Ukraine and public policy at the link.