The process being developed by HCAP for the concession of 22 of Greece’s smaller regional airports, still under the management of the Hellenic Civil Aviation Authority (HCAA), is now in its final phase. This is a complex and critical project, with significant implications for both Greek tourism and regional development, as most of these airports serve island and remote areas with increasing transportation needs.
Needs and Challenges
The 22 airports require significant upgrades, both in terms of infrastructure (runways, buildings, technological equipment) and the quality of services provided to passengers and airlines. Many still operate with outdated facilities and standards that no longer meet the demands of rising tourist traffic, especially in summer months.
For the past five years, HCAP, in cooperation with technical and financial advisors, has been exploring the most appropriate concession model. Several options have been considered, with the most likely being either grouping the airports into one or two clusters (similar to the 2017 concession of the 14 largest regional airports to Fraport Greece), or a more flexible model that pairs commercially attractive airports with less profitable ones.
Which Airports Are Included
The list includes airports in:
Naxos
Paros
Ioannina
Alexandroupoli
Lemnos
Astypalaia
Chios
Kozani
Kastoria
Karpathos
Kythira
Milos
Skyros
Nea Anchialos
Syros
Araxos
Kalymnos
Ikaria
Kastellorizo
Kasos
Leros
Sitia
Naxos, Paros, and Ioannina account for the majority of total passenger traffic among the 22. Airports such as Sitia, Alexandroupoli, Araxos, and Karpathos are also seen as attractive due to their geographic locations or tourism potential.
However, many of the other airports are considered low in commercial value, making it challenging to attract investment. To address this, HCAP is working on a cross-subsidy model: revenue from the more profitable airports will support the operation and maintenance of the smaller ones.
The Case of Kalamata and the Precedent of the 14 Airports
The Kalamata Airport “Captain Vassilis Constantakopoulos” is being handled separately through an independent tender. The winning consortium includes Fraport (already managing the 14 major regional airports), the Copelouzos Group, and the Constantakopoulos Group (owners of Costa Navarino). The concession agreement is expected to be signed by the end of 2025.
The experience of Fraport Greece with the 14 regional airports (including Thessaloniki, Corfu, Rhodes, Chania, etc.) serves as both a guide and a benchmark. Despite initial challenges, infrastructure upgrades and increased passenger traffic are considered a success.
The PPP Model and the Role of the State
Due to the high cost of upgrades — which may not be fully covered by private investors given the limited revenue potential of some airports — a Public-Private Partnership (PPP) model is being seriously considered.
In this model, the state could retain a stake or fund infrastructure projects fully or partially, while private investors would take over operations, maintenance, and possibly commercial development. This “hybrid solution” could bridge the gap between investment needs and the limited appeal of certain airports.
While HCAP has yet to officially reveal its plans, the PPP model is seen as the most realistic, especially for the group of smaller airports.
Potential Bidders
Interest is already emerging from major domestic and international groups:
PSP Investments (Canadian shareholders of Athens International Airport)
Fraport – Copelouzos Group
GEK TERNA – GMR Group (India), developing the new airport in Kasteli
Metlen Aviation
AKTOR Concessions
The final structure of the tender — whether in one or two clusters or through different models — will determine the level of competition and the scale of investment capital mobilized.
What Comes Next
Successfully conceding the 22 regional airports is considered vital for improving national connectivity, boosting tourism in less developed areas, and upgrading overall infrastructure. This project could serve as another example of effectively leveraging public assets through modern public-private cooperation — provided it ensures transparency, investor interest, and tangible benefits for local communities.
HCAP is expected to announce the related tender in 2025, with the aim of completing the first concessions by 2026.
