Sheremetyevo plans to restructure Domodedovo, will prepare development model - CEO

MOSCOW. Feb 11 (Interfax) - JSC Sheremetyevo International Airport plans to restructure the management system of Domodedovo Airport once it becomes the new owner of it, and to devise a model for its development, Sheremetyevo CEO Mikhail Vasilenko told journalists.

"Domodedovo hasn't had an audit for three years. A restructuring is expected. Domodedovo will have its own board of directors and its own management. The airport's board of directors will create a straightforward, unified management structure for the Domodedovo group, with Sheremetyevo's experience providing the foundation," Vasilenko said. He also said that the management would be tasked with ensuring the airport begins to "break even and cover all costs".

Domodedovo currently manages 25 organizations with their own leadership structures. "This is a very challenging project," Vasilenko said. He did not say which number of companies could be liquidated or consolidated.

Asked by journalists, Vasilenko said that it was too early to discuss whether Domodedovo's current CEO, Andrei Ivanov, would remain in his post following the reorganization. "The CEO is working and continues to carry out his duties. Right now, it is pointless to discuss this [appointing a new CEO]. The charter needs to be approved and a board of directors formed to elect a CEO," Vasilenko said.

The government has demanded that Sheremetyevo organize a financial recovery program and a development model for Domodedovo, he said. "Both an optimistic and pessimistic development model will be formed. In the pessimistic one, passenger traffic will remain at its current level or decrease. But the airport will not close. The government has set the task of ensuring it functions normally and does not make losses," Vasilenko said.

He also said that Sheremetyevo had no plans to lure airlines away from Domodedovo. "What is important for us is that airlines are flying and are bringing Domodedovo EBITDA and income. The state requires from us that the airport functions constantly and has its own commercial and pricing strategy," he said.