CYPRUS. Aer Rianta International-Middle East (ARI-ME) has gained a major boost with today’s news that the Hermes Airports consortium (in which Aer Rianta International is a stakeholder) has gained the build-operate-transfer (BOT) contract to construct new airports at Larnaca and Paphos.
Hermes Airports* has signed a concession contract covering a period of 25 years. It is the first concession contract to be concluded in Cyprus.
The group expects to generate more than €100 million in sales each year.
After the financial closure period, Bahrain-based ARI-ME will move in via a newly-formed joint venture and take over the existing retail facilities. The partnership is with powerful local company Cyprus Trading Corporation, chaired by Nicolas Shacolas. Duty free in Cyprus was hit hard by the country’s accession to the European Union in 2004 but the airport business is still worth an estimated US$100 million.
The construction works for the new terminal buildings represent a total of approximately €480 million (US$570 million).
They will be carried out by Bouygues Bâtiment International, a Bouygues Construction subsidiary, in partnership with Cyprus firms Iacovou Brothers Construction and Charilaos Apostolides Public Ltd. Completion time is 42 months. Hermes Airports will start refurbishment works on the existing terminal buildings in the next few weeks.
But it won’t all be plain sailing. Airports in Cyprus came to a standstill today following a wildcat strike by staff demanding that their jobs be safeguarded after the privatisation.
Up to 3,000 passengers and 15 flights were grounded at Larnaca Airport. One flight from London Heathrow was diverted to Athens because it was unable to land.
“We will be on strike for as long as it takes,” a workers’ representative said at Larnaca.
*About Hermes Airports: Within the Hermes Airports consortium, Vancouver Airport Services, together with Egis Projects and the Nice Chamber of Commerce, will provide their expertise in airport operation. Cyprus Trading Corporation and Aer Rianta International (through ARI-ME) will manage the retail activities.
Duty free in Cyprus was hit hard by the country’s accession to the European Union in 2004 but the airport business is still worth an estimated US$100 million.
MORE ON CYPRUS AIRPORTS
Cyprus airport negotiations “˜almost finished’; big boost in store for ARI-Middle East – 04/05/05
Cyprus Airways launches spring promotion to boost customer spending – 11/04/05
