Superfund: The 22+1 regional airports being privatized

Twenty-two regional airports, together with the particularly attractive Kalamata airport, are headed for privatization, following the success of the fourteen that had been conceded to German Fraport.

Reliable information indicates that this year’s exceptional tourism performance combined with the need to upgrade new destinations in island and mainland Greece, are forcing the management of the Superfund, whose responsibility is regional airports, to bring to the fore the first major privatization project.

Already, according to the same information, KANTOR MANAGEMENT CONSULTANTS was entrusted with the relevant financial study and the presentation of the best scenarios for their exploitation.

The study will concern the exploitation, upgrading and concession of the operation of the airports of Alexandroupolis, Araxos, Astypalaia, Chios, Ioannina, Ikaria, Kalymnos, Karpathos, Kasos, Kozani, Kythira, Leros, Milos, Limnos, Nea Aghialos, Naxos, Paros, Sitia, Skyros, Syros, Kastoria, and Kastellorizo. These airports, unlike the 14 managed by Fraport, are not utilized to the extent that they could be. The increase in their traffic in the last decade has been limited, of the order of only 3.9%, in contrast to the fourteen managed by Fraport which in the same period showed a sixfold increase in flights from abroad.

Significant investments

Their upgrading and modernization, will offer direct and indirect benefits to approximately 2 million residents throughout the country, because of the upgrade in tourism and commercial activities along with an overall increase in the values of the destinations. All utilization scenarios for these regional airports require significant investment. For this reason, the instructions received by KANTOR are to evaluate attractive models for private investors which, among other things, will also provide for an operating subsidy, based on corresponding international standards.

The basic idea is for the relevant tender process to be uniform and to seek bids from investors for all 22 regional airports as a set. The Superfund aspires to build a proposal that will be attractive to a private investor, but will at the same time ensure that all 22 will be developed and modernized in the same way so that the destinations can stand out in a balanced way and attract the corresponding tourist traffic. As for the operating subsidy, the authorities explain that the Greek State, in any event, spends a lot of money every year for the maintenance of these airports, with meager results.

Prospects

Those involved in the project believe that, as it develops, it will significantly improve the outlook of the 22 areas that host the specific regional and currently underperforming airports. According to the first estimates, the upgrade and concession of the 22 regional airports will increase passenger and tourist traffic by 43% by 2030. Particularly for those in the island regions, the increase is foreseen at 40% over time.

The case of Kalamata airport is different and properly prepared due to its attractiveness and proximity to the reborn touristic area of Messinia and the Western Peloponnese as a whole. It is worth noting that the airport of Kalamata shows a record increase in passenger traffic by 240% between 2010 and 2019. Information indicates that the relevant tender will be announced in the coming weeks and probably within August.