About KIV activity in the first 7 months of this year and ongoing works

Chisinau International Airport continues its dynamic development. A proof is the increasing flow of passengers and air operations.

During the first 7 months of 2015 a total number of 1,254,007 passengers was recorded which is 35% more than the same period last year. A total number of 13,086 air operations were performed, which is 24.6% more compared to the same period of 2014.

The number of passengers from Russia, flying to Europe, through Chisinau International Airport is actively growing. In the first half of 2015 their number was about 60,000, which is 160% more than in the same period in 2014. The significant increase of these important indicators was noticed by Airports Council International Europe, according to whom CIA is a leader in Europe in the category of airports with a capacity of up to 5 million passengers, registering an increase of 34.28% regarding the number of passengers in 2014, while the average increase in European airports in this category is only 5.4%.

We would like to remind that CIA was also designated "The airport with the most dynamic development" between the CIS countries.

The obtained success reflects the high effectiveness of the strategy and management applied by Avia Invest, administrating company of the Chisinau International Airport. CIA started in full force in 2015, participating in the most important international conferences for the development of air routes, namely: Routes Europe 2015 and Routes Silk Road 2015, having as a follow up to present its stand at the World Routes 2015 conference, in September of this year.

Also Avia Invest leads a number of important negotiations with representatives of airlines and airports on the possibility of increasing the number of routes on CIA. Thus, the frequency of flights Chisinau – Moscow (Sheremetyevo) will be increased at the beginning of winter 2015/2016. Likewise, Pobeda company showed its interest in operating Chisinau-Moscow Vnukovo route. Meanwhile, more European operators, between them the famous Spanish company Vueling Airlines is considering the possibility of launching new routes on CIA.

Due to attractive incentive policy for airline companies, promoted by the Invest Avia, has been managed to attract new operators as LOT Polish Airlines, VIM Avia, Aegean Airlines and Ural Airlines. It follows to have the largest low-cost airline in Central and Eastern Europe, Wizz Air, to operate new flights from Chisinau to Bologna Guglielmo Marconi, since September 30th and London Luton Airport, since October 27th. Also, the company Volotea will operate the flight Chisinau-Verona since December 18th of this year. It’s worth mentioning the national carrier Air Moldova, which began flights to four new directions as Tivat, Madrid, Vienna and Moscow (Sheremetyevo).

At the same time, we are in full reconstruction, expansion and modernization of Chisinau International Airport.

One of the biggest and most important projects has been achieved successfully by Avia Invest. On May 17th, was opened a new modern parking lot, built according to European standards, becoming one of the largest parkings in Moldova, having 800 places. The total cost of construction of this object is 6.5 million euros.

Currently, Avia Invest continues the realization of the investment plan to modernize the airport. At present, are finished the works of the terminal extension (the arrivals, departures area, the luggage area) it having 3860 square meters. Simultaneously reconstruction works are carried out on 11 000 square meters of existing surfaces. At the moment are carried out works on electrical and sanitary installations. Also, new ventilation and air cooling equipment was installed, alongside the new sound system for announcing flights. Similarly, according to the new project’s design, interior works are performed.

Widening and reconstruction of the terminal will allow CIA to increase almost 2 times the capacity of service, up to 750 passengers/hour and to ensure maximum convenience for passengers stay in CIA. Also will be increased the number of registration booths from 12 to 18, and doubled the number of pass passport control booths on departure and arrival, as well as to the existing the 2 conveyors baggage will be added another one. The cost of reconstruction and expansion of the terminal CIA, including modern systems and equipment, amounts to 9 million euro.

Another step in the extensive project to modernize the country's air gates is the reconstruction of the aerodrome. The works will comprise a total area of 500 000 m² (runway/landing platform, taxiways). The reconstruction of these objects are involves Strabag Group – world renowned German company in collaboration with Swiss designer Intairplan GmbH, a member of WAM AG holding, and several local businesses.

Following the works will be increased the index bearing capacity of the runway/landing over its entire length of 3590 meters. Moreover, the runway will be widened from 45m to 60m. The cost of the reconstruction of the runway will rise up to 15 million euro. Also, were initiated works for the rehabilitation of the old runway, which was not operated for 20 years. After reconstruction, it will be transformed into a driveway for the existing runway/landing. At the moment new driveways are built and existing ones are rehabilitated. As in the runway’s case, the bearing capacity of the driveways and aircraft parking places will be increased substantially. This index will reach 70 PCN, to the existing 51 PCN. These works will be spent around 10 million euro. Reconstruction and modernization of the CIA platform will still cost 10.5 million euro.

After all works, CIA will be able to receive and serve all types of aircrafts without traffic restrictions and provide traffic of 21 planes/hour.

Reparation and reconstruction works are carried out simultaneously in several directions. New drainage system, exhaust and water purification is almost ready. The construction of rainwater collectors are in a finalization phase. The cost of these works is 2 million euro.

Electricity supply system was modernized. They was replaced the aging equipment in the distribution stations and built a new main distribution point.

The entire lighting and signaling (runway, driveways, platform) will be modernized as required by ICAO category III. For these works will be spent 3 million euro.

It is important to note that all measures have been taken in order for modernization and expansion works to not affect the operational work of CIA and schedule flights.

Thus Avia Invest, administrating company of CIA, respects the requirement of Concession Contract, implementing on time the stages of the airport development plan.

In this context, we should mention that a few months ago, the Government decided to initiate a series of checks at CIA by several state institutions, including a special commission of the Ministry of Justice. This has been widely promoted in media, being declared at the management of the country. Now, after several months, we are solicited by journalists who are interested in the results of those checks. On our behalf, we want to inform you that we have been open for cooperation with the control authorities, although this process has taken us much time and effort. After completion of all the checks were drawn conclusions and reports according to which, the inspectors, including members of the special commission led by Justice Minister V. Grosu, have not found any violations. They found that the company is dynamically developing and the managing company Avia Invest is administrating efficient the CIA, continuously expanding the range of services and modernizing the airport.

Meanwhile, several articles appeared in the press in which journalists, referring to the results of checks, focused on some expenditure by Avia Invest, in particular to support Milsami soccer team. In this context, we consider it necessary to remind that Avia Invest is a private company and the Concession Contract and obligations assumed by the company does not limit in moving resources to sponsorships. Thus, there can be no question of any violations. Moreover, supporting a sports team carries social a social nature, in this way promoting sport in Moldova, especially football. We have every reason to be proud of the performance of the team supported us, who recently won the title of national champion and has access to prestigious European tournaments. In addition, Avia Invest, sponsoring club Milsami supports eight football teams for children.

Coming back to the material in the press, some of them are drawing attention to the use, by Avia Invest company, of funds that came from its business profits in the reconstruction and modernization of CIA. Here it should be mentioned that Avia Invest has allocated and continues to allocate, in the aforementioned purposes, the proceeds from investors, which is demonstrated by the audit reports. In the same time are gross proceeds of company’s activity, which does not constitute a breach of the Concession Agreement or the general law. On the contrary, it shows that Avia Invest uses all received funds for the development of the Moldovan company and does not take the money out of the country.

Likewise, we want to mention that transmitting a state enterprise to a private management, through concession, is an international practice and Chisinau International Airport is no exception. Rather, it was a right and necessary decission. In all 24 years of country’s independence, in Chisinau Airport were invested around 12 million dollars, while Avia Invest in less than 2 years invests 4 times more. For comparison, in 2012 Q.S. Chisinau International Airport has paid taxes totaling 38 mln lei. Total taxes paid by Avia Invest, in 2014, amounted to 70 mln lei.