Greece formally transfer 14 regional airports to German consortium Fraport

airportsGreece officially completed the transfer of 14 regional airports to a consortium led by Germany’s Fraport, in the framework of privatization, which is a key element of the rescue program of the country. The Greek state privatization agency said that under the agreement signed today, the consortium has paid a total of 1.23 billion EUR.

The agency pointed out that additional government revenue from annual rent and a share of profits of airports will reach a total of 10 billion EUR in 40-year concession.

Agreement has already been approved by the European Commission. It was supposed to take effect last year.

Fraport acquired airports in Akti, Kavala and Thessaloniki and the islands of Corfu, Crete, Kefalonia, Kos, Mytilini, Mykonos, Rhodes, Samos, Santorini, Skiathos and Zante.

With the coming to power the government of Alexis Tsipras stopped many privatization contracts on the ground that will analyze whether they are concluded in favor of the Greek people. One of the transactions for the privatization of 14 regional airports in the country for a total of 1.23 billion EUR.

The contract was signed by the government of Antonis Samaras in November 2014 but was not finalized.

According to the conditions in the concession fee, which Fraport must submit to the Greek treasury transaction, is 22.9 million EUR per year. In the first four years, the company has to invest 330 million EUR in the reconstruction of airports. The total investment is 1.4 billion EUR.

According to analyzes, the privatization of airports will create 1,450 jobs and indirectly from investments will be disclosed further 15,000 jobs.