Moscow\u2019s Domodedovo International Airport, one of Russia\u2019s busiest air hubs, is facing a deepening financial crisis marked by mounting debt, declining passenger traffic and state intervention, the facility\u2019s new leadership told the RBC news website this week.<\/p>\n
Andrei Ivanov, recently appointed to lead the airport\u2019s management team, said Domodedovo\u2019s total debt has reached roughly 70 billion rubles ($880 million).<\/p>\n
That figure includes 34 billion rubles in domestic liabilities and $450 million in foreign currency obligations. Interest payments alone are expected to exceed 8 billion rubles ($100 million) next year.<\/p>\n
\u201cWe will not allow the risk of bankruptcy,\u201d Ivanov told RBC. \u201cWe very much hope to attract a strategic investor or investors in a timely manner.\u201d<\/p>\n
Ivanov attributed the debt crisis to a combination of falling revenues and persistent operational costs.<\/p>\n
Passenger volumes, which fell from nearly 20 million in 2023 to 15.5 million in 2024, are projected to fall by another 2 million this year.<\/p>\n
Revenues have followed suit, falling from 34 billion rubles ($442 million) in 2023 to a projected 30 billion rubles ($390 million) this year, while losses are expected to widen from 7 billion rubles ($91 million) to 10 billion rubles ($130 million) in the same period.<\/p>\n
\u201cThe debt arose due to a decline in passenger traffic and revenue, an increase in losses, despite which expenses were not reduced and operational efficiency did not improve,\u201d he explained, pointing to the opening of a new terminal and the hiring of non-essential staff during the downturn.<\/p>\n
Passenger traffic is currently less than half the airport\u2019s designed capacity, he added.<\/p>\n
The operational crunch has also translated into unpaid wages and unsettled trade payables, each totaling approximately 650 million rubles ($8.2 million).<\/p>\n
The airport’s management company is also facing a bankruptcy suit filed by the Federal Tax Service, which says the company owes around 500 million rubles ($6.3 million) in unpaid taxes.<\/p>\n
But in what Ivanov described as a historic first, a Russian court allowed the company to temporarily use tax debt funds to pay salaries.<\/p>\n
\u201cThis is the only precedent in the country\u2019s modern history. Nothing like this has ever happened before,\u201d he said.<\/p>\n
In addition to addressing the short-term fiscal crisis, Ivanov stressed the need for urgent infrastructure upgrades, including a second runway and new water treatment facilities.\u00a0He estimated that these upgrades would require 16 billion rubles ($200 million) from the federal budget.<\/p>\n