08.04.2005
Copenhagen Airports to stake on the Black Sea

Two airports in Bulgaria could become the next members of Copenhagen Airports’ international operations.

In connection with the privatisation of the airports in Varna and Bourgas on the Black Sea, Copenhagen Airports A/S has been appointed by the Bulgarian State as preferred concessionaire for the two airports, which combined have 2.7 million passengers per year – of whom the vast majority are charter passengers during the summer season.

“Our experience with airport operations in tourist areas of Mexico and China gives us a good background for developing the two Bulgarian airports, which both have a large growth potential,” comments vice president Rasmus Christiansen of CPH International, Copenhagen Airport’s international department.

“We look forward to the final negotiations and hope to sign a final agreement in May, so that we can take over the airports already this summer.”

The Airport at Bourgas had 1.4 million passengers in 2004 – a 30% year-on-year increase – whilst the airport at Varna had 1.3 million passengers – a 14% year-on-year increase. It is expected that the passenger numbers will grow further in the years ahead, primarily due to an increase in the number of charter passengers.

The Bulgarian Black Sea coast is one of the fastest growing tourist areas in Europe. Germans, Britons and Scandinavians are the nationalities travelling the most to the area, but also Russians are returning in large numbers to this area, dubbed the “Costa del Sol” of Eastern Europe.

The hotel capacity in the area has been expanded and updated substantially in recent years, and this trend is expected to continue in the years ahead, among other things due to the low price level.

Varna and Bourgas are located some 120 kilometres apart. Varna has a population of 340,000 and is the third largest and most rapidly growing city in Bulgaria, whilst Bourgas with a population of 200,000 is the country’s fourth largest city.

Generally, the facilities and equipment of the two airports are in good condition, but they are either too small or outdated, and expansion and thorough renovation is therefore needed during the next few years. The runways and taxiways are in relatively good condition.

Both at Varna and Bourgas, the airport handles most activities in-house, and there are about 600 employees at each location. Both airports have unexploited potential within shops, restaurants and other commercial activities.