Aer Rianta International, the overseas arm of the Dublin Airport Authority, is one of the parties that has won a €622 million contract to redevelop and manage two major airports in Cyprus.
The contract has been awarded to a consortium called Hermes Airports. It is understood Aer Rianta International has an 11 per cent stake in this group and is responsible for all the retailing activities to be based at the two airports - Larnaca and Paphos. The contract was signed yesterday.
Based on its 11 per cent stake Aer Rianta International is set to make €62 million from its involvement.
When Aer Rianta was dissolved two years ago, Aer Rianta International retained its name. It has duty-free and retail operations in Moscow, St Petersburg, Bahrain, Delaware, Kosovo, Kiev and Montreal. It remains a subsidiary of Dublin Airport Authority.
It also holds stakes in Birmingham International Airport and Dusseldorf and Hamburg airports in Germany. Its operations contributed a profit of €17.4 million to the Dublin Airport Authority in 2005.
The overseas operations of the company have long been a source of pride for staff, but airlines like Ryanair have called for the assets to be sold off.
The consortium also involves French construction group Bouygues and engineering firm Egis Projects, and Cypriot builder and engineer Charilaos Apostolides.
Hermes won the long-term contract in the face of competition from nine other consortiums. This is the first time the Hermes group has won a contract this size, but Aer Rianta International will be keen to enter further deals.
The consortium has been asked effectively to demolish large sections of the existing airports and build new modern facilities.
The consortium will also manage the airports on behalf of the Cypriot government, which will take them back into public ownership in 25 years.
The contract is one of the largest awarded in Cyprus and is is described as a "build, operate and transfer" deal.
Larnaca caters for about five million passengers a year. It was originally a small airfield, used by the British armed forces. The airport is often used as a hub by passengers travelling between Europe and the Middle East. Paphos is a smaller facility mainly catering for charters.
Meanwhile, the Dublin Airport Authority has formally put the Great Southern Hotel chain up for sale. The company is likely to receive at least €170 million for the nine-strong chain, property sources say.
The hotels will be sold by tender in one or more lots and as a going concern. Agent CB Richard Ellis has set a deadline of June 23rd.
CIÉ, which once owned the chain, has shown some interest in the Galway site, but it is unlikely to be able to compete with major property developers.
It is believed that Bernard McNamara and Choice Hotels backed by Paddy Kelly have teamed up to make bids.
A statement said yesterday the board of Great Southern Hotels was pleased with the level of informal expressions of interest in the hotels to date.
The eight hotels are located at Dublin, Shannon and Cork Airports, at Parknasilla and Killarney in Kerry, at Eyre Square and the Dublin Road (Corrib) in Galway city and at Rosslare Harbour, Co Wexford.
