Fraport is forcing government to postpone works at Thessaloniki airport

eKathimerini –The Fraport-led consortium’s is forcing the government to postpone works to upgrade Macedonia Airport threatening to abandon the 14 regional airports contract  in Greece .

The government is considering a six-month suspension of the work on a second runway at the airport, located some 13 kilometers from the center of Thessaloniki, to ensure Macedonia’s unhindered operation over the summer season.

Sources familiar with discussions over the last few days concerning the biggest privatization project to date in Greece explain that it is not just the timetable of the delivery of the airports by February 2017 that is under threat, but also the entire project.

If work at Macedonia Airport started today, the existing runway would have to shut down for most of the tourism season as it will be crossed by the new 3.5 km one. A temporary solution involving the use of the taxiing runway would not work in the summer as it would not be able to cope with the traffic at peak season.

The runway extension work necessary for the airport to accept transatlantic flights  originally  had an EU budget of 246 million euro. The work started in 2013 and was supposed to finish by August 2014 but was plagued with construction problems and delays.

Fraport Greece is said to have been unnerved by letters it has received from foreign airlines regarding the reduction or cancellation of flights to Macedonia Airport next summer due to the possible problems the works may generate.

The Fraport/Slentel consortium has submitted to the government a list of pending issues of increased significance that the state has yet to address. These outstanding issues are threatening to raise the costs for the consortium by a considerable amount, according to sources who know about the consortium’s message to Athens.

The  two sides are in talks over the list, and, if an agreement is reached, the ministry will in the coming days announce the suspension of works at the airport so as not to undermine tourism traffic in northern Greece next summer. Other airports have issues, too, including that of Chania.

All this also creates problems in Greece’s second bailout review as the completion of privatization projects such as the delivery of the airports to Fraport is among the outstanding milestones.