Greek airports in transition: From public ownership to PPP concessions

The third air transport liberalisation package in the EU was fully implemented in Greece in July 1998. Nevertheless, little has changed since then in terms of the geographical dispersion of air traffic flows. The recent financial downturn of the Greek economy led to a substantial deterioration of traffic, particularly in the domestic market. The Greek state concluded an airport concession tender process in late 2014 with potentially important repercussions not only for the 14 regional airports in question but also for the wider aviation market in Greece. Nonetheless, a newly elected government announced in early 2015 that it will re-examine the whole issue, building, among other factors, on the opinions, concerns and reactions expressed by various interested groups including senior staff in affected airports. On these grounds, the present paper discusses the findings of semi-structured telephone interviews with all 39 Greek airport managers to identify the rationale behind this stance. Moreover, issues related to airport operations and development prospects are addressed from various viewpoints. The paper concludes with policy suggestions, taking into account the existing literature on airport management and ownership while combining the findings from desk and empirical research undertaken by the authors.