ARI-ME on track for July opening in Cyprus

Results of survey
A	38.1 %
B	6.3 %
C	25.4 %
D	9.5 %
E	11.1 %
F	9.5 %

Home

John Rimmer

23-May-2006

Print Article

E-Mail Article

E-Mail Author

Despite rumours in the Cypriot press, the retailer has said it is on schedule to take over the commercial operation at Larnaca and Paphos airports on July 1

Aer Rianta International (ARI) has confirmed that the Hermes consortium, of which its ARI-Middle East subsidiary is a part, has signed a binding contract to take over the Cypriot airports of Larnaca and Paphos. Hermes has already taken over the operation of the airports and ARI-ME will take over the running of their commercial areas on July 1, replacing Cyprus Airways.

Reports in the Cypriot press this week suggested that a re-tender of the build-operate-transfer contracts at Larnaca and Paphos was likely following a complaint lodged by an unsuccessful bidder claiming that the contract terms had been changed unfairly. The Cypriot government threw out the claim over a year ago, but it is still under assessment by the European Commission. RavenFox.com understands that the claim is unlikely to result in a fresh tender.

ARI director general Eamon Foley said that the Hermes consortium had been advised by its lawyers to go ahead with the takeover of Larnaca and Paphos. "The financial close has happened and we have a binding contract in place," he said. "In terms of the retailing at the airports, our agreed timetable is for us to take over the existing facilities on July 1. The handover programme has been agreed with Cyprus Airways."

The tendering of the BOT contracts at Larnaca and Paphos represents the Cypriot government's first significant privatisation and has caused controversy on the island. Shop workers at the airports conducted strike action earlier in the year in protest, but RavenFox.com understands that ARI-ME has reached an agreement with trade unions to ensure a smooth handover.

As reported in DFNI May 15, ARI-ME has named experienced manager Gerry Crawford as its general manager in Cyprus, aided by head of retail Martin Mullen.

Bookmark This Article

• • • •

Delicious Digg StumbleUpon Facebook