Opening remarks by Yevgeniy Chudnovsky: We have been going towards this goal for a long time. Once we had two, and today five million passengers. I hope this year will be 5.4 million passengers. We can say that the aviation industry has emerged from the crisis. In the crisis of 2008 and 2009, we returned all the indicators in two years. The same thing happened now. In fact, over the year we reached volumes that exceed the peak values ​​of 2014, and this year was the peak for the entire industry. Now we can say with confidence that 2017 is the peak year in the history of the Soviet and post-Soviet passenger traffic in Russia, and I congratulate you on that. This year we expect 12 million passengers for the group [Airports of the Regions]. Average growth will be, as in Koltsovo, about 25%. That is slightly higher than the average industry level, which we estimate at 18 - 19%.

Opening speech by Alexey Piskunov: "Record! Even in the Soviet Union in 1991, there were 4,900 million for the year. Now roughly expect 5 million 400 thousand passengers. Our expectations have grown on all major indicators: the number of airplanes, the volume of goods transported. Very pleased that the post grew. There is such an increase that we are forced to undertake urgent infrastructure changes to expand the point of international postal exchange. These are orders (parcels) from the Republic of China. In addition, the program of "florists" is continuing - we have a main hub, then flowers that come from Amsterdam are transported throughout the region. "

- We are all waiting for the World Cup. How do you prepare for the reception of guests?

Alexey Piskunov: We are always prepared to the maximum. There are no fears there would be any unforeseen, unexpected difficulties. The airport is ready. Overall expectations - about 60 thousand fans. It is not difficult to calculate, knowing the parameters of the stadium. Even if there is more in fact, we have a reserve and opportunities for reinforcement at peak times.

- Will there be additional checkpoints?

Alexey Piskunov: Now work is under way to equip the cabins with passport control. To our 30, which are located in the terminal (15 for arrivals and 15 for departures), another 15 will be added. To avoid any congestion of passengers, peak arrivals and departures will increase the number of inspection equipment and attract additional aviation security officers. We now have about 2 thousand passengers per hour - this coincides with the criterion that FIFA has determined.

- Will the regular schedule change somehow during the World Championship?

Alexey Piskunov: Virtually, no. The regular schedule has already been formed taking into account the comfortable conditions for the reception of guests and fans. Passengers should not notice any discomfort. Moreover, the time of year is quite favourable from the point of view of weather conditions - absence of air streams, there are no snowfalls. For this period fogs are not characterised. I hope that everything will go well.

- Will the staff of the airport be increased before the World Cup? Will there be an update and an increase in aerodrome equipment?

Alexey Piskunov: On the eve of the World Cup, we do not plan a radical and spasmodic increase in human resources and technology. For the period of the games themselves, there will be a strengthening of the aviation security service. Now in Koltsovo work about 2 thousand people (without catering). In addition, during the championship will be involved volunteers who are going to help guests navigate the airport.

- New Year holidays are closer than the football championship. Where in this year will Ekaterinburg fly?

Alexey Piskunov: We have holidays earlier - about a week before the new year. This is the beginning of tourist trips. In the European direction, new flights to Verona were opened, appeared in the charter schedule of Catania. Among the main directions, in addition to European recreation, South-East Asia is in demand: Bangkok, Phuket, Thailand and Vietnam. In these areas, the first flights begin on the 24th and 25th of December. From regular flights - on New Year's Eve we have an extreme flight at 22 o'clock. The first flights on the 1st of January start in the morning. This will be the Ural Airlines and charter flights. We calculated that the peak of traffic will be on January 3. These are massive flights to all European destinations and south-eastern countries. About a week after this begins a mass arrival. In the outgoing year, some old directions also returned. The airline "Yamal" resumed flights to Minsk. Frequency - three flights a week. The second direction from the forgotten is Kaliningrad, where the Ural Airlines fly.

- Not so long ago, the Renova Group contributed to the Government of the Russian Federation a proposal for a differentiated VAT for domestic flights. I would like to know at what stage the process of making such a decision?

Evgeny Chudnovsky: The initiative concerned the differentiation of VAT on domestic flights that do not fly through Moscow, so that they are subject to a lower rate than the one currently in the industry. This is 10%. With a few exceptions: Kaliningrad, where the President has recently canceled VAT, the question of zeroing VAT on the Far East is actively being considered, and a privilege applies to Simferopol. Yes, we made these proposals. At the beginning of next year, a meeting will be held, at which the specifics will be discussed. So far, of our proposals - 0% on all domestic flights not related to Moscow, and, of course, leave a rate of 10% for flights that go through Moscow. If the Government goes to such a measure, it will be a significant step for all Russian regional hubs to have the opportunity of full-fledged competition with the Moscow air hub. And passengers will have an opportunity to optimally build their routes.

- What is the status of the project for the abolition of the airport VAT exemption? Is the decision made?

Evgeni Chudnovsky: There is no end. Final consultations are being held with the Ministry of Finance on the approval of the draft resolution on the amendment of the Tax Code. Will it come out before the end of this year, I'm not sure. I think no. This is a very bad signal for the industry, because this year to the Championship introduced a huge number of objects. We were not able to convince the Ministry of Finance, although we persuaded the Government: Arkady Dvorkovich was instructed by the Ministry of Finance and the Ministry of Transport to prepare a coordinated resolution - but they have not yet been crowned with success. Losses of airport operators are very significant. We can say that our regulated Rostov tariff fell into this non-refundable VAT. Tariffs could be lower if the benefit was canceled earlier.

- Ekaterinburg pretends to this exhibition Expo. Earlier it was stated that a third runway could be built to it. Investments were estimated at 15 - 20 billion rubles. Do you consider the possibility of building this strip in case of getting the right to hold an exhibition?

Alexey Piskunov: When we were preparing for the competition at Expo 2020, where we took the second place of honour, the airport carried out some work on preparation. We had a lot of visitors and commissions of all levels. We were evaluated and checked. Expo 2025 is a slightly different task, because life does not stand still. We turned to international aviation consultants and serious European firms. They prepared us for analysis and calculations. Our current master plan, developed by Lufthansa Consulting, suggests even at the moment to build an additional terminal for international airlines. Here in the immediate vicinity, behind the hotel Angelo, for 60 - 70 thousand square meters. This will double our chances. If we now have a designed capacity of about 8 million passengers, then there is an opportunity to increase to 15 - 16 million with the appropriate engineering infrastructure, networks, access roads and roads. December 25 this year will be put into operation after the reconstruction of the runway number 2. Do you need a third band? I doubt. The construction of the third band is a big question. We can use two reconstructed runways. The band No. 1 was put into operation before the SCO summit and the BRICS summit. The second runway was also built according to the federal target program, and will now be improved from the point of view of its capabilities according to the meteorological minimum to the second category of ICAO. We will use them, because our throughput will increase to 30 operations per hour.

- If a new terminal is built, will it be necessary for Ekaterinburg after the exhibition?

Alexey Piskunov: Without the development of transfer transportation, we will stop in our development. Today, the transport aviation mobility of the population is slightly more than one. In the Sverdlovsk region, the population is less than we transported passengers. I understand that passengers from all over the region come - from Chelyabinsk, Tyumen. Ural Airlines is carrying out transit from China to European capitals. This is a major breakthrough. This is almost all the European capitals, which can only come up. They are constantly building the program. Of course, 80 percent of the passengers are citizens of the PRC. But every Sverdlovsk citizen has the opportunity to choose and fly to the European capital, and also to fly to China. Daily flights. - It's great. This is our future and the key to growth. The growth driver is a transit and a transfer. And for tourist companies there are interesting flights and directions. If we forecast 5 million 700 thousand passengers for the next year, then we will soon come to the design capacity of the terminal. We are already thinking in the next year to carry out the reconstruction of the international terminal. According to the terms, everything will be clear by results of the competition for the Expo. Then the terms will be adjusted as necessary. The planned reconstruction will put an end to those technological areas that exist today. There will be nothing to reconstruct. The terminal complex will completely exhaust its opportunities for expansion, improvement and so on. Accordingly, further we look, that we need to design and build. If we get such honour, like Expo 2025, then the plans will be adjusted.

- You mentioned that there is a lot of cargo from China (parcels). In this regard, in the Koltsovo are some kind of infrastructure changes. Could you tell us about them?

Alexey Piskunov: The post of the international postal exchange operator is the Post of Russia. We gave it to them for rent. In the terminal itself there is a dedicated zone, where the technological equipment of the Post of Russia is installed. As I said, the increase is from 1.5 thousand tons to 2.5 thousand tons per year. That is, almost a twofold increase from the moment of opening. This year, the Post of Russia asked to increase technological areas. Now there are design works on the construction of an automated postal centre in our territory. By agreement, we handed over to the Post of Russia almost 7.5 hectares for the construction of this centre, where there will be a new point of international postal exchange. I hope that the construction will start in 2018.

- Do you plan to conclude any concession agreements with the state in the near future regarding the development of the airport and airfield infrastructure? What airports can this be?

Evgeniy Chudnovsky: As for us, the only project of this kind in which we participate is Novy Urengoy. There is given in the concession a strip - with the obligation to reconstruct it and the obligation to build a new terminal complex. Submission of applications will be in the near future. True, we intend to ask for the rescheduling, given the short time for the analysis of the concession agreement. At all other regional airports at the moment, this is not realistic. As it will increase the tariffs for passengers.

- Up to what time you would like to ask to postpone the filing of applications. Can you voice the parameters for investment?

Evgeny Chudnovsky: The investment parameters are the subject of the competition, so I will not be able to disclose them. I think that a shift of 30 working days would be enough. We will discuss with the organisers. The matter is that the concession legislation is rather complicated. The project of the concession agreement (and not in full) is posted for a month for filing - on November 15. Together with our legal advisors and Gazprombank, with which we are implementing this project on an exclusive basis, we believe that there are a number of shortcomings that would be well adjusted before filing applications. With such proposals in the near future we will go to the organisers.

- The Association of Operators AATO states that the airport charges at the new airport in Rostov-on-Don are several times higher than they were in the old one. Is it planned to raise tariffs for airlines at airports in Saratov, Yekaterinburg?

Evgeny Chudnovsky: The word "raise" is probably wrong. What you have in mind is the establishment of regulated tariffs for the new airport. They are installed. Tariffs are really high, but this is an objective factor considering 50 billion rubles of investments. This is the first airport in Russia, built entirely from scratch. We built not only a terminal complex, but also built a large amount of auxiliary infrastructure for private money. We, FAS and airlines carried out a lot of consultations in terms of tariff level. We see that the growth of tariffs will not lead to an increase in the cost of tickets, given the high competitiveness and good profitability of flights in Rostov-on-Don. Will tariffs rise at other airports? There is a federal method for setting the tariff. If you implement a large investment program, you have the right to apply for a tariff increase. Considering that in Saratov a new airport will be built in the open field, and there investments are very serious relative to the current passenger traffic, the tariffs will be significant. It is necessary to look at the situation objectively. Returning to the Rostov case ... Passengers of airlines receive absolutely other level of safety and comfort. Unfortunately, you have to pay for it.

- In addition to the airport Koltsovo and Platov in the Airports holding, there are a number of other airports, I would like to dwell in more detail at each of the airports that will host the World Cup. What is the percentage of readiness? What has already been done? What remains to be done?

Evgeny Chudnovsky: All our airports are absolutely ready, including Platov, which on December 1, 2017, received all necessary permits, and on December 7 we made a full transfer of flights from the old airport, and, without suspending and changing the regular schedule. This is a unique case in Europe and in Russia. In the country, nothing has ever been transferred from one airport to another without stopping the service. From the point of view of the Championship all our facilities are ready. I will repeat that this is Samara, where in 2014 we built and commissioned a new terminal complex. There an investment of about 6 billion rubles. In addition to the terminal, a freight terminal, a station square, a various infrastructure was renovated. The state has reconstructed the platform by now and is now completing the runway. Everything is ready from our side. The state is a bit late. I think the Championship will succeed. In Nizhny Novgorod, the president and I opened the terminal in 2016. It's the same - our part is completely ready. A new terminal, a new station square and infrastructure. The state ends the apron and the second runway. What distinguishes these airports from Koltsovo? "Koltsovo" generally can not notice the World Cup because of its scale. Well, 60 thousand passengers is a bit more than 1%. For Koltsovo it's just a good summer day. All other airports are two to three times less in terms of passenger traffic. There we have reserved the old terminals that will work during the Championship. There, the increase is much more significant. It will require a larger increase in the number of personnel and ground equipment. A large investment program was made on ground equipment, on the inspection equipment. All this has already been purchased. The staff is trained. We do not see any problems from the point of view of our infrastructure. At the same time, we were lucky that there were old terminals everywhere, and we did not create any surplus for the Championship. Then the old terminals will simply close forever. Are carried or re-profiled - this is depending on the assets. And the old Rostov-on-Don airport is closed from the 7th of December. It will go under demolition and there will be residential development.

- In 2020, the FTP ends. Does the industry understand what will happen next. How will the development of airfield infrastructure in the regions be financed? You said that the concession in the regions is illogical. Is there an understanding?

Evgeny Chudnovsky: The FTP ends much earlier. From next year they are already called "state program". Today, the development of the transport system is being developed for the following years. I am sure that the state understands its responsibility and will not abandon the population in hard-to-reach regions, and the program will be continued. The only question is how it will be called. It should be noted that during the period of the Federal Program the Federal Government made 75% of all that needed to be done. You can now name any large (nodal) airports in the Russian Federation, which do not have a modern airfield infrastructure? I do not recall such people. We were lucky, all our airports got into the program of the World Cup. Not only do we have new bands, so we also have two runways everywhere. In ten years there will be a next cycle, when a federal program for the reconstruction of the bands will be required.

- You said that there are practically no airports that need serious modernisation, but we have an international airport Irkutsk. It`s in the city too. I remember that the Holding stated about the interest in the airport, when the competition and everything that was going on around the contest was actively discussed. Can you clarify what is the status now, to whom did the airport transfer and transfer?

Evgeny Chudnovsky: As far as we know, the status is the same. Frown the investor's head and try to decide what the region wants after all. The region, in my understanding, missed a very good opportunity. They lost money FTP - 20 billion rubles crossed out for Irkutsk and, apparently, forever. How much it puts an end to the possibility of building a new airport - is unclear. It depends on the position of the government of the region. The existing airport can last for another five years. There's no problem with that. But if they do not want to develop it, then one must understand that the issue of building a new airport should be postponed for 10 years, while those investments that someone will invest in the operating airport will pay off. We proceed from the fact that it would be right to start the process of building a new airport now, but for this Federation and the region it is necessary to solve the issue with its own budget. That is, to find the necessary (from our experience) 30 billion rubles - 20 from the feds and 10 from the subject - to implement this project. A private investor will be able to connect with his investments. In general, Irkutsk is an interesting airport. He is probably one of the last who stayed in the country from those not included in any large holdings. The investment program has not been fully implemented. There really is something to do in terms of quality of service and removal of infrastructure restrictions. Of course, the tourist potential in terms of the Chinese market is very high.

- What other Russian airports that are not part of any holdings and management companies would be interesting for you to take control of yourself?

Evgeni Chudnovsky: Seriously, almost nothing remains. Ufa and Kazan? They have no need, because the regions most recently held large investment projects there. Irkutsk was discussed. In fact, everything. More of what is available in cities with a million population is nothing. Well, there is Omsk, but there is a difficult situation with Fedorovka. The region must first decide on its own whether they want to build a new airport. We were there about two months ago. Fedorovka is a heavy sight. It is still unknown whether it is cheaper to build there or on a new site. We will look after the development of affairs in Omsk. In general, we are interested. The question is always whether the operator will pull the investment load. Now everyone is going out to projects that are much more difficult from the economic point of view. Previously, we did not see if there were less than a million passengers, because we could concentrate on something more interesting, quick and understandable. Now everyone is starting to look at objects less, or abroad. This is also one of the ways of development. Not the CIS, one must look at Europe.

- Do you think Europe will be given, in the light of sanctions, under the management of the Russian company?

Evgeni Chudnovsky: Firstly, it can be done together. Secondly, it depends on the country in Europe.