Fanis Zois
Talks have begun between the Greek state’s privatization fund (TAIPED) and the Canadian pension fund PSP for a 20- extension of the concession lease for the Eleftherios Venizelos Athens International Airport, part of the current government’s efforts to meet revenue targets from privatizations, as mandated by the third bailout.
According to reports, the privatization entity wants negotiations to have entered a “mature” stage by September 2016, thus finally recording progress in one privatization chapter that has seen five years go by without a deal.
To date, both an extension of the lease contract and the sale of 30 percent of the airport operator’s share capital, which is owned by the state, have been delayed.
If the process moves forward, market analysts estimate that a contract extension to 2046 could lead to a reduction in the usage fees for the Athens Airport, given that an initial investment of 1.1 billion euros will be depreciated over a longer period of time, instead of the 10 years remaining on the current contract.
Lower fees would also boost the airport competitiveness, an important factor in increasing tourism flows through Athens and higher resulting tourism revenue.
The “Eleftherios Venizelos” Airport continued to increase passenger volume in the first quarter of the year.
