New Delhi: Aviation major GMR has won the contract to operate the New International Airport of Heraklion at Crete in partnership with Greek infrastructure major TERNA S.A. (100% subsidiary of GEK TERNA Group).

This Partnership with Greek infrastructure major at Crete for the New International Airport of Heraklion is considered important because Crete is a major tourist destination and the Heraklion airport had been a gateway for 15%-20% of tourist arrivals to the country.

Therefore on this development, the Business Chairman of GMR Airports, Srinivas Bommidala said that, “We are excited about the project and the opportunity to partner with GEK Terna in Greece. This new airport will definitely boost the tourism industry and aid the growth of international tourists that Greece has been witnessing over the past couple of years.” 

He further said that, “The airport is in line with the Asset Light strategy we have adopted for overseas expansion and will see GMR participate in project management and commercial management in addition to airport operations.”

This partnership project of GMR with Greek infrastructure involves Design, Construction, Financing, Operation, and Maintenance & Exploitation of the New Heraklion Crete International Airport with the concession period of 35 years including Phase 1 Construction of 5 years. 

“This selection reinforces the position of GMR Airports as a major global airport operator. This will be GMR Group’s second foray into Europe after having developed Istanbul’s Sabiha Gokcen airport. Having been selected, we expect to complete necessary documentation and concession signing over the next few months,” added the President of GMR Airports Limited, Sidharath Kapur after being selected for this partnership.

GMR has also been surrounded with several controversies at times. Earlier in 2010, a subsidiary of GMR had signed an agreement with the government of that country and Maldives Airport Company Ltd for modernisation and operation of the airport in the capital city; Male but both the parties fell into dispute two years later over a fee imposed on departing passengers, and the government terminated the contract claiming the pact was invalid.On this GMR tribunal has decided to pay of damages for termination of its contract in Maldives for the airport which included all the money it had borrowed from Axis Bank for the project. Later on, GMR said that they won a compensation of $270 million (Rs 1,800 crore) in that legal dispute of an airport project with Male, Maldives.