Greece to reconsider $1.36bn airport privatisation deal with Fraport

17 February 2015 (Last Updated February 17th, 2015 04:43)

The new leftist government in Greece will review the privatisation of 14 regional airports in the country as part of its anti-austerity measures policy.

Kos

The new leftist government in Greece will review the privatisation of 14 regional airports in the country as part of its anti-austerity measures policy.

German operator Fraport and its regional partner energy firm Copelouzos Group were selected in November last year to operate the 14 airports under a €1.2bn ($1.36bn) deal.

The contract is expected to be signed in October.

Greek state minister Alekos Flambouraris told the regional Mega TV: "The contract hasn't been ratified yet and we have asked it be frozen in order to review its content."

The move to privatise the airports was one of the biggest deals to have been agreed by the previous government to boost the cash reserves of the debt-ridden country.

"The contract hasn't been ratified yet and we have asked it be frozen in order to review its content."

The new government has been opposing the austerity measures being advocated by the other European countries for an extension of the €240bn bailout.

Under the operating concession announced by the Hellenic Republic Assets Development Fund in November last year, Fraport and its partner have been selected to operate the airports for 40 years.

The Fraport and Copelouzos consortium will be responsible for maintaining, operating, managing, upgrading and developing the airports until 2055.

The mainland airports include Aktio, Kavala and Thessaloniki, while the remaining 11 are located on the Greek islands, including Kos, Corfu, Crete, Rhodes, Santorini and Zakynthos.

Since it came to power in January, the new government has halted the sale of Piraeus port to Chinese shipping company Cosco, and privatisation of power utility PPC and state natural gas company Depa. It is also planning to cancel development works at Athens's former Hellenikon airport, reported Reuters.


Image: The Kos island airport figures in the privatisation deal awarded to Fraport. Photo: courtesy of Steven Fruitsmaak.