The Greek government is reportedly examining the possibility of a second wave of privatizations for regional airports around the country, following the signing of an agreement earlier in the year transferring the long-term management of 14 airports to a consortium led by Germany’s Fraport.
The report comes after the passing of a bill on Sunday that includes the establishment of a “superfund” for privatizations in the recession-plagued and debt-laden country, with the new entity set to include a wide variety of real estate properties as well.
The new superfund will also reportedly assume the remaining shares of the Athens International Airport held by the state, as the facility – Greece’s biggest and busiest airport – has been managed by private interests since its opening.
The second batch of state and municipal airports and airfields set for transfer to the superfund and possible privatization are 23 in number, although the 14 airports already picked up by the Fraport-Slentel consortium are considered as the best prospects in the domestic air travel category – Thessaloniki, Corfu, Hania (Chania), Cephallonia, Zakynthos, Aktio (Preveza), Kavala, Rhodes, Kos, Samos, Mytilene (Lesvos), Santorini, Mykonos and Skiathos.
Nevertheless, the second batch of airports set for possible privatization include facilities on the islands of Naxos, Paros, Hios (Chios), Milos, the Kalamata airport in the southern Peloponnese and the Sitia airfield on Crete.
The deal with Fraport-Slentel will funnel 1.23 billion euros into the former privatization fund’s coffers, as well as another 10 billion euros projected over the entire course of the contract (tax revenues, leasing etc.), along with an investment program at each airport.
Although the six top prospective candidates for privatization are facilities with less than 250,000 passengers a year, the Greek side believes that with sufficient investments the airports will dramatically boost traffic.
Kalamata’s airport (more than 188,000 passengers in 2015) has generated increased interest of late due to an emphasis on year-round tourism in the extreme southwestern Greece prefecture, which has also emerged strongly on the international holiday scene after the opening of the nearby state-of-the-art and large-scale Costa Navarino resort.
In a related development, the CEO of Fraport Greece, Alexander Zinell, on Monday hailed the ratification of the concession contract for the 14 regional airports by Parliament on Sunday.
“Ratification of the contracts for the transfer of the regional airports – one of the biggest investments in Greece – by the Greek Parliament, comprises a landmark of progress for an infrastructure project of particular significant.”
