Airport “Borispol” is losing tens of millions of hryvnias due to monopoly in the Duty Free area

Как аэропорт "Борисполь" теряет десятки миллионов гривен из-за монополии в зоне Duty Free

Wednesday, August 21, will be held the first 5 years of the tender for the lease of retail space in the restricted zone Duty Free International airport “Borispol”.

This was announced by commercial Director of the airport George Zubko.

“For me personally and my team tomorrow is a landmark day. For the first time since the start of my work in “Borispol” I will witness the competition for the rental of space (25 square meters) under the trade in the restricted zone of the terminal D”, – Zubko wrote on his page in social network “Facebook”.

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A special auction will be the state property Fund, which in 2014, when was the last time the competition was held, gave almost 2820 squares at the airport, actually one person only$ 55 per square meter. The majority of retail space for 10 years at this price has got three companies: OOO “BF Grupp”, LLC “Kievrianta” and LLC “BF end GB Retail travel”. In all three the ultimate beneficiary is Arthur Grantz, businessman, close, according to media reports, already to the former people’s Deputy of Ukraine from party “popular front” Andrew Ivanchuk.

To get at once at such a low price, the most commercial area of the international airport Arthur Granz managed through competition, the terms of which the state property Fund ordered in such a way that to win it might just only listed firms.

In particular, in terms of the competition stated that to participate can only those companies that have experience of work in Ukraine for more than three years. Thus, it was “discarded” the main competitor companies of the group “BF” Swiss duty – free operator Dufry.

At the end of the sixth year of the firm Arthur Granz pay the airport “Borispol” 4 times less money than, for example, paying tenants in the Duty Free area of the airport “Lviv”, where the price per square meter is about 10 thousand hryvnia.

Moreover, as told by commercial Director of the airport Georgy Zubko, not in the restricted zone of the terminal D according to the results of the last competitions every square meter of the store WOG is worth about $315 per square meter.

“A tender for the lease of 3.7 square feet for ticketing Agency has led to about $660 per square meter,” – he said.

This means that the airport “Borispol” due to the opaque held in 2014, the state property Fund of the contest loses tens of millions of hryvnias per month. Although it is not only “Borispol”, and the state budget, given that 70% of the profits from the lease of commercial areas, the airport pays to the budget, and only 30% keeps.

Moreover, it is obvious that to give commercial space for rent for 10 years at a fixed rate without adjustment – to put it mildly, is unprofitable, as the passenger traffic grows every year, and this means regularly increasing the profit of tenants of trading places. That’s just from the airport, thanks to the 10-year contract with the firms of Arthur Granz no profit does not receive.

The airport “Borispol” has headed a rating of the ACI Europe in terms of passenger

The competition to 25 square meters, which will hold the state property Fund on 21 August, is really symbolic – it will show whether the changed situation in the Fund and in the government as a whole from the time when it was headed by the leader of the “popular front” Arseniy Yatsenyuk. If at the end of the competition, the rental price will be the market, not too low, it will confirm the opacity, and maybe even crime adopted in 2014 decision to pay almost 3 thousand squares in “Borispol” for 10 years to firms of a business partner “the soldier” Ivanchuk for not the best price – both for the airport and for the state.

“According to the theory of relativity, tomorrow we get the price per square meter in a secure area of terminal D, taking into account the ratio of “large/small area” – and then we will draw conclusions!” – wrote commercial Director of “Borispol” George Zubko.

According to him, the process by which the commercial area of the airport “Borispol” in the lease conveys the state property Fund, a superlatively efficient mechanism.

“We need to continuously work on improving the efficiency of each square meter of commercial space. Spaces are limited, so we cannot afford inefficient use. The choice of a potential tenant needs to happen transparently and with maximum financial benefit,” said Zubko.