Fraport Wins Bid to Operate 14 Greek Airports

FRANKFURT--German airport operator Fraport AG (FRA.XE) said Tuesday it won the bidding process for a 40-year operating concession of 14 regional airports in Greece, together with its Greek consortium partner Copelouzos Group.

The cost of the concession is 1.234 billion euros ($1.53 billion), which is due once the transaction has been completed by the end of 2015. The concession includes operating, maintaining, managing and expanding the 14 regional airports by 2055.

Fraport will hold a majority in the consortium and will fully consolidate the Greek operating company once the transaction has been completed.

Due to interest charges, depreciation of the purchase payment and effects related to concession accounting, the Greek operating company will accumulate a net loss of EUR100 million in the first three years, which will directly hit Fraport Group's results, Fraport said.

In 2016, the airport operating company is expected to have revenue of more than EUR180 million and earnings before interest, taxes, depreciation and amortization of more than EUR90 million.

The concession comprises the seven airports of Thessaloniki, Aktio, Chania (Crete), Kavala, Kefalonia, Kerkyra (Corfu) and Zakynthos. The other seven airports are in Rhodes, Kos, Mykonos, Mytilini, Samos, Santorini and Skiathos. In 2013, these airports served a total of about 19.1 million passengers.

Write to Ulrike Dauer at [e-mail]

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