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Moscow’s Domodedovo Airport to Spend $3.4 Billion on Expansion

Domodedovo, the Moscow airport that abandoned plans to sell shares in London this year, plans to invest $3.4 billion to more than double passenger traffic by 2020, Chairman and billionaire owner Dmitry Kamenshchik said.

Closely held Domodedovo, the largest air hub in Eastern Europe, will use its own cash to boost capacity to 52 million passengers a year by end of the decade, compared with 22.3 million last year, Kamenshchik told reporters yesterday.

DME Ltd., Domodedovo’s holding company said in May it planned to sell shares in London and hired Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Citigroup Inc. to manage the offering. The company later abandoned the sale, citing market conditions.

Domodedovo has been stockpiling cash for expansion and plans to pay off its $20 million debt by the end of the year, Kameshchik said. Shareholders of DME planned the IPO for personal benefit, not to fund the company’s expansion, Kamenshchik said, declining to identify the owners by name.

Forbes magazine’s Russian edition estimates Kameshchik’s wealth at $1.1 billion.

To contact the reporter on this story: Ekaterina Shatalova in Moscow at eshatalova@bloomberg.net

To contact the editors responsible for this story: Brad Cook at bcook7@bloomberg.net

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