BUSINESS

Agreed settlement for Fraport’s pay claims

TAGS: Transport, Finance

Fraport Greece and the state are about to reach a mutually beneficial compromise, according to sources, regarding Greece’s contract obligation to the operator of the 14 regional airports concerning the latter’s losses from the lockdown.

The final details have not yet been made known, but Kathimerini understands that they will provide for a partial suspension of the annual operation fee of 22.9 million euros for as long as the impact on air traffic lasts. The contractor is said to have estimated its first-half losses from the government measures to contain the pandemic at around €150 million.

The model of the mutually beneficial compromise, under discussion since the spring, was chosen for the state to avoid undertaking much heavier financial obligations.

The contract with Fraport Greece allows the German-Greek consortium to claim its lost revenues. The company also sought to find a solution without having to resort to arbitration or other legal means, say sources familiar with such procedures, as the company did not wish to get into any form of conflict with the Greek state.

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