Antalya Havalimani Airport

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In April 2007, the general directorate of state airports authority (DHMI) granted to the joint venture of Germany's Fraport and Turkish IC Holding a 17 year concession contract to operate Antalya Airport, the Turkey's busiest airport after Istanbul Airport. Antalya Airport handled nearly 18 million passengers in 2007, more than 15 million of which were international passengers. Located about ten kilometers east of the port city of Antalya, Antalya Airport (AYT) was Turkey’s biggest tourist airport. Antalya, the capital city of Antalya Province, was eight-biggest city in Turkey and together with the vacation destinations Belek and Kemer, was the mainstay of tourism in the Turkish Rivera. In 2006, 187 airlines served Antalya Airport, mainly charter carriers. Since the inauguration of a new international terminal, passenger traffic had grown more than 12 percent per year. The new international terminal was built under a BOT contract (Build, Operate, Transfer) contract signed with a joint venture of Fraport and a local construction company in 1998. The BOT contract expired in September 2007. Fraport’s consortium, which was owned by Fraport (51%) and IC Holding (49%), won the contract through a public tender by placing the highest bid EUR2.37 billion euros (USD$3.19 billion) for the right to operate the 17 year concession. Two other bidders submitted bids Turkish TAV Hava Limanları Holding and a joint venture between Turkish Celebi Hava Servisi Corp and Austria's Flughafen Wien (Vienna Airport). However, the consortium of Celebi Hava Servisi Corp and Vienna Airport were disqualified for not presenting all required information. Turkish TAV Hava Limanları lost the tender by offering US$ 3 billion. DHMI and the winning consortium signed the concession agreement on May 22, 2007. Under the deal, the consortium agreed to operate two internationals and one domestic terminal at the airport for a period of 17 years until 2024 (one of the two international terminal's operating rights would be transferred for 15 years). Of the USD$3.19 billion offered, Fraport and IC holding paid 3% at the contract signing. The remaining was to be after taking over the terminal operations and in periodic installments until to 2024. The operating company was obliged to maintain the terminal operations at international standards as well as the procedures and principles specified in the concession contract. At the end of the concession term, the operating company would be required to return all assets to DHMI in operative condition. In accordance with the concession agreement the operating company deposited a performance bond amounting to Euro 142.3 million (USD 195) at the beginning of the concession period to the benefit of DHMI. This performance bond was issued by a Turkish bank, secured in part by corporate guarantees given by the shareholders. In addition, the consortium committed to invest Euro 107 million (US$146 million) in airport renewal and construction.