Russia's Second Largest Airport Brushes with Financial Ruin
In the heart of Russia, Domodedovo Airport - one of the country's largest air hubs - is currently navigating through turbulent times. After its nationalization due to financial difficulties, the airport has been struggling to implement recovery plans and infrastructure development strategies.
Recent operational disruptions, including drone attacks that have temporarily halted operations at Moscow airports including Domodedovo, indicate ongoing security and operational challenges [1][5]. However, detailed information about the airport's financial recovery plans or infrastructure development is scarce in the current search results.
The airport's current passenger traffic is at least twice below its capacity, and bankruptcy is not an option. Instead, the airport's new head, Andrei Ivanov, has stated that a strategic investor or investors are being sought to revive the airport [1].
The total debt of Domodedovo Airport is approximately 70 billion rubles, including 34 billion in rubles and 450 million in dollars [1]. Completing the second runway and equipping the airport with wastewater treatment facilities is estimated to cost the federal budget 16 billion rubles, according to Andrei Ivanov [1].
In 2023, the airport's revenue was 34 billion rubles, but it dropped to 31 billion in 2024 and is expected to decline further to 30 billion in 2025 [1]. Losses have been increasing: in 2023, they reached almost 7 billion rubles, in 2024 - 7.2 billion, and they are expected to grow to 10 billion in 2025 [1].
The airport serves domestic flights of airlines such as S7 Airlines, "Ural Airlines" and Red Wings, as well as international destinations [1]. It's important to note that interest payments for Domodedovo Airport will amount to 8 billion rubles in 2025 [1].
The airport's financial woes have led to a lawsuit from the Federal Tax Service of the Kaliningrad region demanding the recognition of the managing company as bankrupt due to a tax debt of around 500 million rubles. However, the court refused to satisfy it, and the Russian Federation allowed the tax debt to be directed towards wage payments [1].
The Arbitration Court of the Moscow Region has ruled in favor of the recovery of 100% of the shares in LLC "DME Holding" by the state [1]. The lawsuit covered 30 legal entities that are part of the "Domodedovo" group and concerned its key beneficiaries - Dmitry Kamenshchik and Valery Kogan [1].
The supervisory authority accuses these individuals of maintaining factual control over the strategically important infrastructure object, withdrawing profits abroad, and carrying out asset redomiciliation in violation of the legislation [1].
For the latest and more detailed information, one may need to consult official Russian aviation authority publications or financial news sources beyond the current search data. It's clear that Domodedovo Airport faces significant challenges, but the search for a strategic investor or investors offers a glimmer of hope for the airport's future.
- The financial challenges at Domodedovo Airport have extended beyond its operations, intersecting with Russia's business and political spheres as the airport seeks a strategic investor to aid in its recovery.
- Amidst the ongoing turbulence, the general-news landscape is sparse on comprehensive details about the financial recovery plans for Domodedovo Airport, yet the airport's debt, infrastructure development needs, and anticipated investor involvement continue to be topics of interest in the realm of finance and business.
