Newsroom
Cyprus has officially signed an agreement to settle long-standing disputes over its international airports. The Ministry of Transport, Communications and Works, along with Hermes Airports, reached this deal after months of negotiations. It clears the way for the next phase of development at both Larnaca and Paphos airports, which will include various expansion projects aimed at improving passenger experience and handling a much higher volume of travelers.
Construction work is set to begin by the end of March 2025, once all necessary financing and permits are in place. The expansion is expected to allow both airports to handle up to 17.4 million passengers, a 43% increase from the 12.2 million anticipated for this year. This major upgrade will modernize the airports and help secure Cyprus' position as a growing hub for tourism and air travel.
At Larnaca Airport, plans include a 20,000 square meter terminal extension, new boarding gates, and more aircraft parking spaces. This project is expected to take around 30 months to complete. Paphos Airport will also see significant improvements, including a 30% larger building and an extended taxiway to boost safety and capacity. These upgrades are expected to be finished in 27 months.
One of the key aspects of the agreement is the resolution of several disputes that have been lingering between the two parties, including claims related to the illegal Tympos airport. The disagreement over Tympos Airport was due to its illegal operation, which conflicted with the terms of the Concession Agreement for Larnaca and Paphos airports. Hermes Airports, which manages those airports, raised claims about the impact of Tympos’ operation on their rights. As part of the settlement, Hermes agreed to drop their claims in exchange for €30 million in compensation and a €20 million loan from the government, alongside major expansion plans for both airports.
Transport Minister Alexis Vafeades highlighted that this agreement is vital for the long-term development of the airports and will help boost Cyprus' economic growth by securing new air routes and strengthening its international presence. He emphasized that the expansion of the airports would significantly improve passenger service, with no additional cost to taxpayers.
Christophe Petit, Chairman of Hermes Airports, expressed satisfaction with the deal, noting that the €640 million investment in the airports has already brought in over €600 million in concession fees over the past 18 years. He added that these new projects will ensure that the airports continue to meet the needs of modern air travel well beyond the current concession period, solidifying Cyprus' role as a key player in the global aviation and tourism industries.
This agreement marks a new chapter in Cyprus' airport infrastructure, promising to enhance connectivity, tourism, and economic growth for the island in the decades to come.
