Assets Fund Says Airports Deal to Boost Greek Coffers by €14bn

Samos Airport. Photo © Daniel541, Wikimedia Commons

State coffers are set to get a much-needed boost to the tune of 14 billion euros following the privatization of 14 regional airports late last year, the Greek assets fund said on Monday.

Citing figures from a 2015 privatization progress report, the Hellenic Republic Asset Development Fund (known as TAIPED) expects incoming revenue to exceed 14 billion euros during the 40-year concession of 14 regional airports to Frankfurt-based transport company Fraport AG-Slentel Ltd.

The government is also set to benefit from cumulative fiscal, social and other benefits amounting to 4.6 billion, the fund said, adding that ownership of the properties, infrastructure and facilities remain in the hands of the Greek government.

In the meantime, TAIPED President Stergios Pitsiorlas said on Monday, that negotiations with shareholders for the 20-year renewal of the concession contract for the management of Athens International Airport have yet to begin.

Listed company Fraport took over 14 regional airports late last year in a privatization deal that brought a total of 1.2 billion euros to Greek state coffers. The German airport operator will invest a total of 330 million euros in the upgrade and renovation of the airports it now controls.

Under the 40-year deal, Fraport and its Greek partner energy firm Copelouzos now manage the domestic airports in Thessaloniki, Corfu, Chania, Kefallonia, Zakynthos, Aktion, Kavala, Rhodes, Kos, Samos, Mytilene, Mykonos, Santorini and Skiathos.

At the same time, trade unions and other bodies against the privatization deal have sought legal recourse with the Supreme Court expected to reach a decision on their claim in the coming months.