Fraport Greece has commenced the 40-year concession for managing and developing 14 regional airports on the Greek mainland and popular holiday islands, the company said.
Following the operational transfer of the airports, Fraport Greece paid the upfront concession fee of EUR 1.234bn to the state-owned Hellenic Republic Asset Development Fund (HRADF). Along with this upfront fee, an annual fixed concession fee of EUR 22.9m 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. Ownership of the airports is retained by Greece.
Under the concession agreement, Fraport Greece will be investing about EUR 400m for improving and expanding the airports´ infrastructure over the next 48 months. The company had signed an agreement with the Greek-based Intrakat construction and engineering company to refurbish, expand and build new facilities at the 14 airports.
The 14 Greek regional airports served a total of 25.3 million passengers in 2016, a 9% increase year-on-year. Fraport Greece will operate, manage and develop the airports over the next four decades – with responsibility for aviation as well as non-aviation areas.
Fraport Greece is 73.4% owned by the Frankfurt based airport operator Fraport AG and 26.6% by Copelouzos Group.