Fraport Greece Hosts Airport Charges Consultation Event for Airline Representatives
In accordance with European regulations, Fraport Greece today presented its airport charges system for Thessaloniki Airport (SKG), which will apply once operations at SKG are transferred to Fraport Greece.
More than 50 representatives of airlines currently serving Thessaloniki Airport, as well as airline associations, participated in this well-received consultation event. Fraport Greece underscored to participants that it is committed to providing a harmonized and transparent airport charges system at SKG and across the entire 14 Greek Regional Airports.
At the consultation event, the Fraport Greece executive team – comprising Alexander Zinell (CEO), Vangelis Baltas (CFO) and Bill Fullerton (CTO) – presented the airport charging system, a general introduction about Fraport Greece, as well as an overview of infrastructure plans for Thessaloniki Airport.
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About the Greek Regional Airports Project – A Win-Win Project for Greece:
- The 14 Greek Regional Airports Project is a major private investment. It is considered to be one of the largest concession projects in Greece and presents significant benefits to the tourism sector, Greece’s economy as a whole, the people of the regions served by the regional airports, as well as to millions of international tourists visiting beautiful Greece every year.
- In the highly competitive international tourism industry, the 14 regional airports serve as vital gateways for one of the country’s most important sectors. The Greek Regional Airports include 3 mainland gateways (Thessaloniki, Aktion and Kavala) and 11 airports on Greek islands (Chania on Crete, Kerkyra on Corfu, as well as Kefalonia, Kos, Mykonos, Mytilene, Rhodes, Samos, Santorini, Skiathos and Zakynthos). The 14 airports received more than 23 million passengers in 2015 (up 6 percent year-on-year). Around 73 percent of these passengers are international travelers.
- In early 2013, Greece’s state-owned Hellenic Republic Asset Development Fund (HRADF) initiated a transparent, international bidding process for two 40-year concessions to operate, maintain and upgrade 7 regional airports under each concession (Cluster A & Cluster B). The Fraport-Copelouzos consortium participated in this tender process which attracted leading international bidders.
- HRADF selected the Fraport-Copelouzos consortium as preferred bidder in November 2014 for the 40-year operating concessions for both Clusters A and B, based on the highest bid of €1.234 billion for both clusters.
- Fraport and Copelouzos Group established their joint company Fraport Greece in 2015 in order to act as the concessionaire for the two concessions.
- On December 14, 2015, Fraport Greece signed contracts with the HRADF and the Greek state for the 40-year concessions for the two clusters. The contracts are identical to the documents included in the bid documents submitted by Fraport-Copelouzos in November 2014.
- At the time of the project closing full payment of the €1.234 billion euros upfront concession fee will be made by Fraport Greece in tandem with the takeover of operations at the airports. Along with the upfront concession payment, an annual fixed concession fee of €22.9 million, plus an annual variable concession fee will be paid.
- The Greek Regional Airports are not being sold. Ownership is retained by the Greek State.
- During the 40-year concession period, Fraport Greece will be responsible for the operation, maintenance and upgrading of the 14 Greek Regional Airports. Under the contract, around €330 million will be invested by Fraport Greece in improving the airports during the first years up to 2020. In subsequent years, further investments will be made for maintenance and repair, as well as traffic-driven capacity expansions.