GREECE. Fraport Greece has commenced the 40-year concession for managing and developing 14 regional airports on the Greek mainland and holiday islands.
The company, which is 73.4% owned by Fraport and 26.6% by Copelouzos Group, paid the upfront concession fee of €1.234 billion to the state-owned Hellenic Republic Asset Development Fund following the operational transfer of the airports today (11 April). It is the biggest concession fee in Greece’s history.
An annual fixed concession fee of €22.9 million will be paid to the Greek State, as well as a variable annual fee based on 28.5% of Fraport Greece’s yearly operational profit. Actual ownership of the airports is retained by Greece.
Under the concession agreement, Fraport Greece will invest about €400 million in improving and expanding the airports’ infrastructure by 2021.The company said it would focus on enhancing facilities, operational processes, and the passenger experience. Five new passenger terminals will be constructed.
Dufry division Hellenic Duty Free Shops recently struck a 30-year agreement with Fraport to operate retail stores at the 14 Greek airports. The deal will see space more than doubled from the current 5,000sq m to over 12,000sq m across the airports.
“Since being selected as the winning bidder for the Greek regional airports in 2014, we have remained steadfastly committed to this visionary project,” said Fraport Executive Board Chairman Dr. Stefan Schulte.
“We believe in Greece and its potential as one of the greatest travel destinations in the world. The goal of Fraport Greece is to enhance the travel experience for visitors from around the world – by upgrading and expanding facilities and by improving operational processes, shopping, and services.
“Today is a great day for Greece and its people. It is also an important day for us because Fraport Greece is the single largest expansion of our airport portfolio and a milestone in further growing our international business.”
The 14 Greek regional airports served a total of 25.3 million passengers in 2016, a +9% year-on-year increase. The mainland airports are: Aktion; Kavala; and Thessaloniki. The eleven island airports are: Kerkyra/Corfu; Chania/Crete; Kefalonia; Kos; Mytilene/Lesvos; Mykonos; Rhodes; Samos; Santorini; Skiathos; and Zakynthos.
Fraport Greece CEO Alexander Zinell commented: “Today marks the beginning of a new era for the 14 Greek regional airports. Within only twelve months we have created Fraport Greece, a world-class airport operator with over 500 highly motivated staff eager to move each of the 14 airports forward into the future.
“We will develop and manage the airports for the benefit of passengers and airlines – for all stakeholders. These mainland and island gateways will act as a catalyst of growth for Greek tourism as well as other industries.
“Well-managed airports have been proven to serve as dynamic economic engines for their regions. We appreciate the outstanding support received throughout Greece and look forward to the challenges and opportunities ahead.”
