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 ulrike.dauer@wsj.com
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