Statement by Alexander Zinell, Designated CEO of Fraport Greece

Fraport Greece Welcomes Parliamentary Ratification of the Concession Agreements for the Greek Regional Airports Project


Alexander Zinell, the designated CEO of Fraport Greece, welcomed the ratification of the concession agreements for the 14 Greek regional airports:   

”The Greek parliament’s ratification of the concession agreements is a major milestone in advancing this key infrastructure project – one of the most important investments for Greece and its people. We are pleased and say thank you to the Greek parliament and State for this vote of confidence. We are truly committed to making this a win-win project for Greece and its people, for the tourism industry and overall economy, for tourists from around the world, as well as other users of the 14 regional gateways.”   

The sucessful ratification will also send a strong message to the global marketplace that Greece is forward-thinking in creating a new, dynamic investment environment for the country.
“We can now move full speed ahead towards the implementation phase. Fraport Greece is already undertaking comprehensive preparatory work at the 14 regional airports. We are all working towards the so-called project “closing”, when we can commence operations at the airports.”  

“In particular, we are convinced that our engagement in Greece will act as a catalyst for the growth of the country’s major tourism sector. Well-managed airports around the world have proven to serve as economic engines for their communities. This is also a goal for the Greek regional airports, with anticipated economic spin-off effects for industries such as hospitality, travel services, retail, construction and various services. The positive response we receive from business leaders and other stakeholders proves that we are on the right track.”


– ENDS – 

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 euros 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 euros, 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 euros 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 capacity expansions, depending on traffic volumes – totaling more than 1 billion euros in investments (including the 330 million infrastructure investment in the initial phase). 

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