Upfront payment of €1.8 billion confirms Antalya Airport concession extension

Fraport TAV Antalya today confirmed the extension of its contract to operate and develop Antalya Airport in Turkey until 2052 by paying 25% of the €7.25 billion concession fee.

A ceremony held in Istanbul to mark the occasion was attended by the Turkish Minister of Transportation and Infrastructure Adil Karaismailoglu, general manager of the State Airports Authority (DHMI); Huseyin Keskin, TAV Airports president and CEO, Sani Sener; and Fraport AG CEO. Dr Stefan Schulte.

The JV secured €1.225 billion financing for the upfront payment from nine banks – Deutsche Bank, Ziraat Bank, Akbank, Vakıfbank, TEB, Alpha Bank, Qnb Finansbank, Piraeus Bank and Kommunalkredit Austria, with the remaining amount financed by equity.

Şener noted: “Together with our partner Fraport, we have led a successful operation for the last four years in Antalya, which is the largest tourism destination in the Mediterranean.

“A strong reiteration of our commitment to invest in Turkey and our confidence in the future of the Turkish aviation market, we made the best bid for the concession of Antalya Airport until 2052.

“We have invested €750 million in equity jointly with our partner Fraport AG, and commenced the development works. Today, as promised, we closed the financing and successfully transferred the 25% upfront payment to the State Airports Authority.

“We would like to thank all the lenders for their trust and close collaboration. It’s yet another validation for this project, our financial model and the future of Antalya and Turkey as the leading tourism destination in the region.”

While Fraport CEO, Dr Stefan Schulte stated: “Today’s upfront concession fee payment highlights our strong commitment to one of the most beautiful regions in the Mediterranean and our confidence in Antalya as a global brand.

“We believe that Antalya will see further growth in touristic demand. Many people will come because Antalya is a very attractive and competitive year-round destination.”

Known as the gateway to the Turkish Riviera, Antalya offers diverse cultural and historic treasures, culinary delights, pristine beaches, bustling nightlife, as well as international conferencing facilities, sports and events.

Schulte added: “Together with our TAV Airports partner, we will continue to expand and transform Antalya Airport into a prime gateway for people from all around the world.”

Already managing the airport, TAV Airports and Fraport JV had won the tender for the concession of Antalya Airport between January 2027 and December 2051, with a bid of €7.25 billon plus VAT.

The concession agreement foresaw a 25% upfront payment, and the remaining amount to be paid on annual basis from 2027 onwards, when the new concession period begins.

Furthermore, the JV is investing around €600 million to increase the annual design capacity of the airport to 65 million passengers per annum in three years.

As part the investment, the international terminal area will increase to 267,000sqm from 142,000sqm and the domestic terminal area will increase to 75,000sqm from 37,000sqm.

An additional 1.2 million square metre apron area will increase available aircraft parking positions to 181 from 106.

In 2040, an additional 70,000sqm of international terminal area will bring the annual design capacity to 80 million passengers per annum.

The total investment during the concession period will reach €765 million.