German Fraport AG received the concession for 14 Greek airports

Moscow. December 14. The company-the operator of Frankfurt airport Fraport AG after a long period of intense negotiations, signed a contract on obtaining the concession for 14 Greek regional airports, according to Deutsche Welle.

Together with Slentel Ltd, a subsidiary of the Greek Copelouzos Group, the German company will manage these airports for 40 years, said representatives of Fraport and the Greek office for privatisation on Monday.

This is the first major privatization project of the government of the Prime Minister of Greece Alexis Tsipras. Also this arrangement is first approved by the privatization deal since then, as Greece and its creditors agreed on the terms of financial assistance.

Under the agreement, the airports remain the property of the Greek state. The consortium is the concessionaire, the majority share of which is owned by Fraport, at the completion of the transaction in the fall of 2016 will pay 1,234 billion euros. He also will annually transfer to the Greek state EUR 22.9 million and is committed until 2020 to invest in infrastructure managed airports 330 million euros.

Greek regional international airports which are the subject of the transaction are including on the Islands of Crete, Corfu, KOs, Rhodes, Samos, Santorini and Thessaloniki, which is the second largest in Greece. Last year they carried about 19.1 million passengers in 2016 is expected to increase to more than 23 million passengers.

Fraport JV and Slentel will be responsible for the maintenance, operation, management, modernization and development of 14 Greek airports until 2055.

Fraport is the operator of the international airport in Frankfurt – the biggest “air harbour” in Germany and the third largest in Europe. In normal operation, daily it serves to 1.3 thousand flights.

Fraport also owns a controlling packet of the airports in Lima (Peru), Antalya (Turkey), Burgas and Varna (Bulgaria). In addition, since August of last year, the company also has retail stores in four U.S. airports (Baltimore, Boston, Cleveland and Pittsburgh) via AMU Holdings Inc.