Kazan Airport looks for investor for 49% of airport

Published: 11/10/1999

Kazan Airport is reported to be up for sale or for long lease. According to its General Director, Azat Khakimullin, the airport is seeking an investor for a 49% stake in the company or a long term leasing arrangement, similar to that of Domodedovo Airport in Moscow. In order to attract potential investors, the state has transferred the ownership of 530 hectares, including the 37-hectare airfield, to the airport. To date, the airport has had expressions of interest from 40 parties, but Khakimullin does not consider any of them to be serious investors. Kazan Airport has been undergoing a reconstruction programme since 1996. To date, some Rb 328.8m have been invested, and another Rb 212m is expected in 2000. A new runway, capable of handling heavy aircraft, such as the Boeing 747, was opened last month. In May 2000, a Thomson-CSF air traffic control (ATC) system, meeting international requirements, will be brought into service (www.concise.org 26th October 1999). Built in 1979, Kazan Airport was granted international status in 1996. In November 1998, it became a wholly owned state enterprise. Its authorized capital is Rb 73.7m. Its current level of operations are far below its potential capacity of 150 aircraft per day, with just 25-30 aircraft being handled in the summer season and 15-20 in the winter. The airport reported first 9month 1999 revenues of Rb 43.3m, up from Rb 38.8m in the first nine months of 1998. The airport's financial management appeared to also improve in the period with accounts payable, together with payroll debt, decreasing from Rb15.4m to Rb 7.8m. Accounts receivable decreased from Rb 18.2m to Rb 12.8m. The company has been granted an investment tax loan from the Tatarstan budget.

Article ID: 1067