ANALYSIS OF EXTERNAL ENVIRONMENT

Development of World Economy

At present worldwide freight transportation business is increasing dramatically – volume of fright transportation increased almost twice in comparison to growth of passenger transportation. According to the forecast the volume of freight transportation will triple by 2020.

Thus, the largest increase will be in the Asia-Pacific region. Forecasting service of international air transportation company AirBus reports that:

  1. average annual growth of cargo transportation will remain unchanged and equal to 8.1%, but transcontinental flights is expected to increase up to 9.2%, for Asia - up to 9.3%, for transport between Asia-Pacific and Europe – up to 7.3 %, international traffic in other regions will grow up to 6.9%;
  2. the number of cargo aircrafts in the world will increase from 1510 of average capacity 45,5 tons in 1999 to 2240 of 50,5 tons accordingly in 2009.

In the period from 2009 to 2019, the number of freight aircrafts will increase to 3450 with average capacity of 53,3 tons.

Based on above, the air transport will increase significantly in next 15 years worldwide.

Development of Air Services

This forecast describes possible ways of cargo transportation development in the future. In contrast to mathematical predictions it is not based on calculations.

There are three scenario:

This Master Plan contains a realistic scenario. The scenario is based and on basic assumptions, as set forth in this section.

The below aspects are particularly important for the development of air services on short-term and medium-term planning.

Stabilization of internal situation in Ukraine and opening of the borders stimulate an increase of international air services. A lot of airlines from Western Europe and other regions already fly to Kyiv. This may be reason for significant increase of flights by foreign airlines to Kyiv certainly exceeding an average European level.

The important point is that the Object is focused on establishment and development the base for all airlines. Geographical location of the Object may be used as a separation of the Far East and Western Europe. Therefore the Object will be central for the flights from India, China, Pakistan, Iran, Middle East and Arabian countries of Southeast Asia on one side and Europe, USA and Latin America on the other side.

In case it’s necessary to maintain air communication with other continents, the Object will be able to provide the airlines with all required conditions.

The Object will provide all facilities for air transportation at a high technology level and in compliance with international standards.

 

 

 

All planned measures will increase the traffic volumes and, consequently, revenues.

During short-term planning of this market segment it is likely to rely on a constant, unchanging traffic volume.

Below are the volumes of cargo transportation, the number of operations on aircrafts take-offs and landings, predictable airlines shares in traffic volumes.







Air cargo transportation, airlines activity

Goods transportation from 1 to 15 years (annually), in thousand tons

Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Airlines of world countries 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Airlines of Ukraine 0 4 5 6 7 8 10 12 14 16 18 21 24 28 32
Airlines of CIS 14 15 15 18 20 23 27 31 35 39 44 50 57 65 73
Transit of any Airlines 5 5 6 6 6 7 7 8 9 10 11 12 13 14 16
Total 20 26 29 34 38 44 51 59 67 75 84 95 107 121 136

Annual Number of Flights

Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Airlines of world countries 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Airlines of Ukraine 0 50 60 72 86 104 124 149 172 197 227 261 300 345 397
Airlines of CIS 770 809 849 973 1106 1260 1436 1640 1792 1962 2151 2362 2598 2861 3156
Transit of any Airlines 250 263 276 331 397 476 572 686 789 907 1043 1200 1379 1586 1824
Total 0 0 1100 1265 1455 1673 1924 2212 2434 2677 2945 3239 3563 3920 4312

According to passenger transportation forecast the diagrams displays airlines’ shares in air transportation services and the number of performed flights.

Airlines’ Share in Total Air Transportation in 1st Year

Airlines’ Share in Total Air Transportation in 20th Year

Airlines’ Share in Total Flights in 1st Year

Airlines’ Share in Total Flights in 20th Year

Ukraine's Geographic Location

In the general scheme of airways Ukraine has very advantageous position in one of the most intensive cargo sector between Western Europe, Asia and Far East, that covers about 20% of global air traffic. This sector is one of growing most rapidly.

Relations between European and Asian countries became closer. Optimal transport connections of these countries (air, railway, and road) pass through Ukraine. Kyiv Aviation unit (airports Boryspil, Zhulyany, Antonov). Belongs to the transport corridors Krytsky ¹ 3, ¹ 9, Europe-Asia, Baltic- Black Sea.

The shortest way from Europe to the Far East and Central Asia goes through Russia and Ukraine, that is about 20% shorter compared to southern option through Turkey and Iran. It will certainly lead to a redistribution of cargo traffic in favor of this direction, provided an appropriate freight service infrastructure available.

JAL (UK), while developing a forecast of potential income of Ukrainian airlines, using a pair of terminals which include European cities on the routes between Europe and South Asia, found out that foreign airlines could execute 1078 flights per week through air space of Ukraine.

 

 

 

Given these trends, as well as strategic location of Ukraine, it is reasonable to establish on its territory an international complex of air transportation.

This is also confirmed by numerous statements and offers by foreign brokerage and freight forwarding companies engaged in cargo and passengers transportation stated during negotiations with the Ministry of Transport of Ukraine and the airports.