Greece Accepts Improved Athens Airport Offer

May 31, 2017

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Greek development agency HRADF has accepted an improved offer from airport operator Athens International Airport SA (AIA) for a 20-year extension of its concession to run the airport.

AIA increased its offer to EUR€600 million (USD$674 million), with net proceeds of €483.87 million HRADF said.

The Hellenic Republic Asset Development Fund (HRADF) expects revenues of approximately €894 million from the 20 year extension. AIA will be called upon to make a total investment of about €2.35 billion to account for the estimated upward trend in passenger traffic and the expected increase in tourism, HRADF said.

The completion of the transaction is subject to approvals by European authorities and the Greek Parliament.

Athens International Airport SA has a 30-year concession, to 2026, to operate the country’s main international gateway. The successful bid, if approved, will take the term to 2046.

Canada’s Public Sector Pension Investment Board through its AviAlliance airport management company owns 40 percent of AIA, Greek group Copelouzos has a 5 percent stake, with the remaining 55 percent held by the Greek government, partly through HRADF.