Hermes Airports, the international consortium operating the two main airports of Cyprus, marked a historic milestone in mid-December to serve a record 12 mln passengers this year and is expected to accommodate 12.2 mln by the close of the year.
The record number is up 5.3% from the number of passengers served at Larnaca and Paphos last year.
The landmark number, reached on December 20, coincided with the settlement of a lengthy dispute to extend Hermes’ concession by a further 18 months at its expiry, allowing the company to operate the two airports until the end of December 2032.
The operator is also expected to invest €170 mln to expand the two terminal buildings, build additional boarding bridges and enhance infrastructure and facilities to be able to serve up 17.4 mln passengers – 12.4 mln at Larnaca’s Glafcos Clerides airport and 5 mln at Paphos.
Larnaca airport, built in 2009, has already surpassed its design capacity of handling 7.5 mln passengers a year, while Paphos served 3.6 mln passengers last year.
Construction work should begin at the end of the first quarter next year and be completed by the end of 2027.
On December 23, Transport Minister Alexis Vafeades and Hermes Airports CEO Eleni Kaloyirou concluded the negotiations that began in September 2023, with the airports operator backing down from the €430 mln sought in compensation for losses from new taxes and regulations, the impact from the Covid pandemic and sanctions imposed on Russia, a major travel source, over its war in Ukraine.
The final compensation has been reduced to €30 mln, while the government will provide Hermes with a €20 mln state loan for losses from the operation of the illegal Tymbou airport in the Turkish occupied north.
The construction works include expanding Larnaca airport by 20% with 20,000 sq.m. added to the main terminal building, presently at 100,000 sq.m., an annex with more aircraft parking stands (from the current 28) and increasing the passenger boarding bridges, from the 16 today.
Paphos airport will see the main terminal building enlarged by 30% to 26,000 sq.m. and an extension of the taxiway to accommodate more aircraft and a quicker turnround of passenger boarding and disembarkation.
Baggage handling and security
The baggage handling process and security are expected to be upgraded at both airports, while additional actions include the further development of infrastructure for the provision of renewable energy sources, and the use of electric vehicles with the aim of reducing emissions.
After the signing of the agreement, Minister Vafeades said that, “the necessary expansions of both airports will contribute towards the log-term development of the airports and the attraction of new airlines and additional routes.”
In a statement after the deal was concluded, Hermes’ chairman Christophe Petit said that the mutually beneficial agreement put an end to long-outstanding issues.
He added that the two airports were built at a cost of €640 mln, while to-date, during the 18 years of operation by the consortium, the state has had €607 mln in revenues from the concession agreement.
“As operator, we have achieved a lot over the years. We look forward to starting and completing another important project, which will further upgrade Cyprus’ two international airports,” said Petit, who is also Deputy CEO of Bouygues Bâtiment International, the largest shareholder in Hermes Airports with a 22% stake.
Hailing the agreement as a positive outcome, the Paphos Regional Board of Tourism, an umbrella organisation that includes local municipalities, hoteliers and the town’s chamber of commerce, urged Hermes to stick to a timely implementation of the works.
“This is a very important project of strategic importance and a host of long-standing requests from Paphos authorities are finally on track for implementation.
“Especially for Paphos airport, the situation is now unbearable in almost the entire spectrum of controls, departures, arrivals and short-stay outdoor areas.”
On its way to reaching the pre-Covid record of 4 mln holidaymakers, the statistical service Cystat reported in December that tourist arrivals totalled 3,727,196 during the January-October period, compared to 3,562,417 in the same period of 2023, an increase of 4.6%.
