Greece's primary aviation hub, Athens International Airport (AIA), has introduced a massive £540 million expansion program with a view to increasing its passenger capacity from 26 million annually to 40 million annually by 2032. The development comes in the wake of the long-term growth of passenger numbers and the financially healthy performance of the airport.
Phased Expansion Strategy
The expansion will be done in stages:
Phase One
To begin in early 2025 and complete by 2028, the phase will add capacity to 33 million passengers a year. Key developments are:
- An 81,000-square-meter expansion of the central terminal, with new passenger boarding areas fitted with air bridges and bus gates.
- Expanded check-in area and a new terminal face.
- Improved baggage sorting and claim facilities.
- Extra commercial floor spaces for offices and shops.
- Creation of a new aircraft parking apron to hold 32 aircraft, along with related taxiways and service stations.
- Construction of a new VIP terminal.
- Improvements to the road infrastructure and the development of a multi-story car park.
(ypodomes.com)
Phase Two
Commencing when passenger numbers are around 31.35 million annually, phase two will increase capacity again to 40 million passengers. This includes further terminal expansions, more parking areas for aircraft, and infrastructure improvements, with an estimated budget of over €700 million.
(ypodomes.com)
Phase Three
Activated at 36 million passengers annually, this stage involves constructing a second terminal over the current long-term parking plot. The airport will have the capacity to take 50 million passengers annually after its completion.
(ypodomes.com)
Design and Architectural Highlights
Leading architectural firms, including Grimshaw, Haptic, and K-Studio, have been commissioned to plan the expansion. The new terminal will have large covered gardens, additional lounges, retail areas, and a dedicated Extra-Schengen area to enhance the traveling experience for non-Schengen travelers.
(thesun.co.uk)
Financial Performance and Funding
AIA reported a 10.2% increase in total revenue to €665.5 million and a 1.9% rise in after-tax profits to €235.9 million in 2024. Passenger traffic hit a record high of 31.85 million, a 13.1% year-over-year increase.
In order to finance the expansion, AIA will issue up to €240 million of share capital with aviation-linked investments, such as a €100 million Scrip Dividend Programme to allow reinvestment of dividends in shares by shareholders. Significant shareholders, including AviAlliance (50%) and the Greek state (25.5%), will be approached.
(ekathimerini.com)
Implications for Greek Tourism
This growth is accompanied by Athens' growing popularity as a tourist destination, namely the boom in the construction of the Athens Riviera, described as a "mini Dubai" due to the luxury hotels, skyscrapers, and facilities. Enhanced airport capacity should allow for increased tourism and economic development throughout the region.
(thesun.co.uk)
In total, the expansion master plan demonstrates AIA's commitment to creating space for future expansion and enhancing the passenger experience to make Athens a hub of European aviation.