HRADF successfully completed an international tender process for the concession of the right to manage, exploit and operate 14 regional airports in Greece. In particular, the right for the upgrade, maintenance, management and operation of two groups of seven regional airports each has been granted under two 40-year concession agreements to the consortium consisting of Fraport AG Frankfurt Airport Services Worldwide and Slentel Limited of the Copelouzos group.

The Concession Agreement (CA)  between the Greek State and the preferred investor FRAPORT A & B was signed on 14 December 2015, while the official Concession Commencement Date for the Upgrade, Maintenance, Management and Operation of the Aegean, Crete, Continental Greece and Ionian Regional Airports was 11 April 2017.

Group A includes the airports of Thessaloniki, Corfu, Kefallonia, Aktion, Zakynthos, Kavala and Chania and Group B includes the airports of Rhodes, Samos, Skiathos, Mytilini, Mykonos, Santorini and Kos.

The Concession Fees included a lump sum payment of €1,234,000,000 and €22.9 million annual guaranteed payable rent, adjusted annually for inflation.

More specifically, the preferred investor offered a one-off price of €609 million for Group A and €11.3 million annual guaranteed payable rent, adjusted annually for inflation, while for Group B it offered a one-off price of €625 million and €11.6 million annual guaranteed income.

The Variable Consideration (for the full duration) amounts to 28.2% EBITDA for Group A and 28.94% EBITDA for Group B.

The duration of the Concession is forty + ten (40+10) years, with a four-year initial period of Airport Upgrade Works, which was completed earlier.

It is the obligation of the Concessionaire to comply with the objectively defined Level C criteria, as determined by IATA, and subsequently to maintain these service levels for the entire duration of the concession.

The investments amounted to €440+ million in the first 4 years of the concession, while the amount of investments for the total 40 years of the concession period is estimated at €1.4 billion.

The infrastructure and facilities devolve to the Greek State and are returned to it upon expiry of the concession.