Corfu International Airport, one of those to be managed by Fraport. Photo: Jean Housen / Wikimedia
In one of the first effects of the Greek bailout deal, which requires Greece to privatize many public facilities, Fraport, the company operating the Frankfurt airport, is getting a concession to operate 14 of Greece’s bigger airports. In theory at least, the contracts will produce revenue for Greece and reduce expenses.
Fraport’s deal does not include Athens, but does include Thessaloniki with about 1.5 million arrivals, Rhodes with 1.9 million and Corfu with over 1 million. Also included are Hania in Crete, Santorini, Mykonos and a number of other island destinations. The contracts, still incomplete, would call for about €330 million in investment by Fraport over the first four years. The leases run for 40 years. The lease payments to Greece would be about €23 million annually.
Opposition is widespread in Greece, as is opposition to the privatizations in general. In particular, Osypa, the union of civil aviation staff, claims that Greece currently earns €450 million a year from the airports, and that the investment by Fraport will barely cover maintenance costs. The union is filing a complaint with the European Union’s competition commissioner, challenging the near-monopoly control Fraport will have.
