A German company is to take over the running of 14 regional airports in Greece.
The sale of the rights to operate the airports for 40 years, worth some €1.2 billion, is the first privatisation Greece has been forced to make in order to meet the conditions of its third bailout loan worth €86 billion. The deal will also bring in €23 million every year in rent.
Fraport AG, which runs the busy hub of Frankfurt airport, will now be responsible for operating the Greek airports, some of which are in popular tourist destinations, including Corfu, Kos, Mykonos and Rhodes. Fraport has a Greek partner in the venture, Greek energy firm Copelouzos.
The Greek government under Alexis Tsipras had initially opposed selling off the country’s assets, but had to concede in order to get renewed bailout funding.
Without the new loan, Greece would have to default on its debts and could have been forced to leave the euro zone.
But there could yet be a fly in the ointment. Some reports quote a Fraport spokesman who indicated that negotiations are still underway. The initial arrangement was made in 2014. It was expected that the new licence holders would spend some €330 million in airport upgrades, but it appears they have been asking for further guarantees from the Greek government owing to the chaos of the last few months.
