Athens' Eleftherios Venizelos International Airport (AIA) continues to rank as one of the biggest investment attractions in Greece over the recent period, with interest picking up after the finalization of a deal extending a concession contract for the facility by 20 years.
By F. Zois
Athens' Eleftherios Venizelos International Airport (AIA) continues to rank as one of the biggest investment attractions in Greece over the recent period, with interest picking up after the finalization of a deal extending a concession contract for the facility by 20 years.
The extension was achieved with a price tag of 1.36 billion euros, with much of the money to flow into Greek state coffers, as the state owns a majority stake in the holding company that leases out the award-winning Athens airport.
The primary AIA shareholders - companies controlled by Canadian investment group PSP - along with Greece's privatization agency (HRADF), the Greek state and the Copelouzos group last Thursday agreed with the management of a privatizations fund over the extension. Ratification of the agreement by EU and Greek regulatory authorities is pending, but is expected to be positive.
Moreover, the country's biggest and busiest airport - located due east of the Greek capital - is expected to exceed the 26-million passengers threshold by 2021.
The first major investment after the conclusion of the extension deal comes with tender to expand the central terminal on its southwest side by nearly 15,000 square meters. The project is valued at 25 million euros.
The announcement coincided with a signing ceremony between Aegean Airlines and Airbus for the purchase of up to 42 new A320s airliners by the latter, a deal that can reach five billion euros.
Aegean Airlines, billed as one of AIA's biggest customers, has also announced the creation of a state-of-the-art pilot training center at the airport, a facility that will also train pilots and cabin crews of other airline companies.
The 30-million-euro facility will cover 12,000 square meters and be completed in 18 to 24 months.
High profitability and passenger traffic posted by AIA has also again generated reports of interest in the state's remaining stake in the airport holding company.
According to sources that spoke with "N", three investment schemes have expressed an interest in the 30-percent stake, namely, Canada's PSP Investments, Shenzhen Airport Group and the local Copelouzos group, which itself is a minority shareholder in Fraport Greece, which manages 14 regional airports around Greece.
PSP already retains AIA's management, and is the chief signatory in the agreement for the concession extension.