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Civil War in AIA for the extension… and Luxemburg “on the horizon”

Because the Greek economy, being in its sixth year of an extremely dangerous recession, can attract very few investors, unless the complexity and multitude of the legal framework, among others, is tidied up on one hand, and on the other hand, the legendary framework that will provide incentives for a steady 10-12 year period by the Greek State is issued, encouraging investors to bring their money in Greece, for substantive investments.

Panayotis Roumeliotis, the Chairman of the Board of Eleftherios Venizelos Airport, has recently been appointed by the current Administration.

Being well known for his directness and honest attitude in every position in which he has served, he is fighting a tough battle nowadays, against TAIPED.

And of course, the TAIPED seems to go along with the view of the private operator, and owner of 40% of the Airport’s shares, the Canadian pension Fund PSP, whose executives came in Athens at the end of January and met with the management of the International Airport and top government officials.

The Chairman of the Board insists on denying the “haste”, that the contract should be extended now for another further 20 years, meaning until 2046!

The refusal of P. Roumeliotis is based on the reasoned opinion, that the price will be much higher, in favor of the Greek State, which currently owns 55% of the Athens International Airport.

Logically, if one reviews the Greek Stock Exchange during this period, one would be at least a fool “not to see” that it struggles for survival, having reached, with small temporary bursts, its lowest levels since the last 25 years.

Because the Greek economy, being in its sixth year of an extremely dangerous recession, can attract very few investors, unless the complexity and multitude of the legal framework, among others, is tidied up on one hand, and on the other hand, the legendary framework that will provide incentives for a steady 10-12 year period by the Greek State is issued, encouraging investors to bring their money in Greece, for substantive investments.

Furthermore, the flow of foreign currency from tourists, the change in the quality of tourism, will certainly be elevated and healthy after 2026, when we will have found some “reasonable solutions” regarding the immigration issues, the international position of our Homeland, in the sense of balancing its structures and its economy.

Besides, the current chairman of TAIPED, during an interview on February 15, 2016, admitted that any extension will be very difficult.

Specifically, the 30% share percentage controlled by TAIPED, out the total 55% stake owned by the government, is what constitutes the “bone of contention” for the Pension Fund of Canada.

As it is, naturally expected, TAIPED poses arguments in favor of the extension in present tense, claiming, inter alia, that this is now a state obligation imposed by the austerity memorandum.

But the numbers do not lie, meaning:

The Canadian PSP discusses an extension at a price of 250.0 million Euros, until 2046, when the AIA’s profits, just for 2015, were 110.0 million euros, ie. the airport gained, within a year, 44% of the amount that PSP offers for 20 years!
In proportion, the “theoretical price” that they should offer, ought to have been more than 3.0 to 5.0 billion euros.

In theory, someone would argue. Yes, but even with a macroscopically viewed number, the healthy persistence of the AIA President, in postponing the extension for 2026, is established.

And of course, the fact that he has put an end to direct contract awarding for the AIA, and has managed to find a number of other advantageous solutions that favor the Government, all these irrefutably prove that Panagiotis Roumeliotis, dynamic as always and clear, proceeds undeterred, even though the Canadians press hard, perhaps thinking the case of “El dorado Gold”.

If that is the case, they compare different issues.

Besides, let’s not forget the long and clearly expressed will of our country’s lenders to transfer all assets of Hellas, through the “Privatization Superfund”, to be established, in Luxembourg, which will be under foreign management.

There are temporary battles that are held, showing that its seat will “probably” remain here, but the truth is hardly hidden.

Will there be a Hellenic Government, now or in the future, able to resist the “complete conquest” of the Country’s assets?

At present there are still guards that “holding the last stand of Thermopylae”.

And Panagiotis Roumeliotis is definitely one of them.

Emmanuel A. Gyzis is managing partner of Emmanuel A. Gyzis & Associates Law Offices.

Managing Partner - Emmanuel A. Gyzis & Associates Law Offices | + Posts

Emmanuel A. Gyzis is managing partner of Emmanuel A. Gyzis & Associates Law Offices.

He was born in Athens, Greece, 13 January 1947; admitted to Athens Bar Association 1974. Education: University of Athens, Law School (1972), London, (L.LM. 1980), specialized in Aviation Law and originally worked in the respective field on behalf of British Tour Operators and Charter companies. 

With longstanding journalistic and writing activity, his articles have been published in financial newspapers and magazines specialized in Aviation and Tourism. Author of pioneering monographs on the development issues of Olympic Airways (1989), he has published during a course of many years, a series of articles regarding its viability, its position in the international environment, as well as for other private airlines in general, while at the same time he participated in relevant International and Greek Conferences and Organizations. Successful and long-term engagement with issues regarding private airports / heliports, Low Cost Carriers (LCC), Aircraft Fractional Ownership, Ground handling matters. At his law firm “EMM. GYZIS AND ASSOCIATES”, together with a group of specialized associates he deals mainly with aviation law issues (cooperation with construction companies for commercial aircraft and leasing companies) and tourism law issues, specializing in mass tourism from/ to Greece and occasionally cooperating with Tour Operators. Since 1993, he has founded a number of Greek and foreign airline companies, on behalf of his clients, in accordance with the applicable legal status. He has participated in committees for the drafting of legislation regarding air transport, such as private airports, the Presidential Decree for private heliports and the Basic Legislation of the Aviation Code and he is the General Secretary of the Hellenic Aviation Society. For many years, he has been studying emerging markets, as a consultant for foreign companies, which plan to invest worldwide.

LANGUAGES: English.

MEMBER: Athens Bar Association, International Bar Association, European Society of International Law (ESIL), American Society of International Law (ASIL), British-Hellenic Chamber of Commerce, Greek-American Union, Hellenic Aviation Society.

PRACTICE AREAS: Aviation Law, Aerospace Law, Tourism and Transport Law, (European) Commercial and Company Law. Arbitration. Establishment and Operation of foreign companies in Greece. Project Finance. Free Movement of Capital. Privatization. Foreign/ Hotel Investments. Mergers and Acquisitions.

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