Commission OKs concession extension for Athens Int’l Airport

The European Commission on Monday approved a 20-year extension of the concession for the Athens International Airport (AIA SA), announced that the facility “receives no undue economic advantage or aid.”

The Athens International Airport, officially operating at the AIA Eleftherios Venizelos, is operated by the Athens International Airport SA under a concession agreement set to expire in 2026. Nevertheless, a new concession agreement, replete with an increase consideration, means an extension until 2046.

Commissioner Margrethe Vestager, in charge of competition policy, said the “… Commission has found that the 1.1-billion-euros fee that will be paid by AIA for the 20-year extension of the Athens airport concession corresponds to a market price. This means that AIA will not benefit from any state aid in the form of an unduly low fee for the concession. The Commission cooperated actively with the Greek authorities to reach this positive result, which is one of the most important economic transactions under the Greek privatisation programme”.

Extending the concession was part of Athens’ privatization commitments under the ESM stability support program.

In a related development, the Commission has found that 20-million-euro aid measure in favor of the operator of Athens International Airport S.A. is in line with EU state aid rules.

This measure aims to compensate the airport operator for damages sustained between July and December 2021 due to the Covid-19 pandemic and travel restrictions imposed by Greece and other countries to limit the spread of the virus. As a result, Athens International Airport experienced a steep decline in traffic and profitability over this period. The aid will take the form of a direct grant.