Greece has signed its first major privatization deal granting control of over a dozen regional airports to a German company. The agreement is part of international creditors’ demands to privatize state assets to secure €86 billion in bailout funds for Athens.
The €1.23 billion contract gives a 40-year lease to the Frankfurt airport operator Fraport. The German firm could upgrade and operate a cluster of airports, including those on the popular tourist islands of Corfu, Mykonos, Rhodes and Santorini
Fraport chief executive, Stefan Schulte called the deal a “win-win” for “Greece and its people.”
“The project underscores the extensive know-how that Fraport will be able to provide at these 14 aviation gateways which are vital for Greece’s economy and, in particular, its huge international tourism sector,” Schulte said.
“It’s a very significant development and a strong message, in all directions, that the Greek economy is winning the trust of markets and entering the road toward growth,” said Stergios Pitsiorlas, the head of Greece’s privatization agency.