Munich Airport's position and interest in Sofia Airport have not changed The concession of Sofia Airport is about to be finalized at an extremely difficult time for world aviation. The unprecedented crisis in the air market over COVID-19 will surely bring about major changes in the air, such as airline bankruptcies, consolidations and huge challenges for the airport, which have left almost no passengers. SOF Connect was selected as a future concessionaire at Sofia Airport, with participation in the 99% investment fund Meridiam and Strabag (1%), while Munich Airport has a special commitment to SOF Connect as a third party airport operator. The winner was announced on July 17, 2019. There followed a massive appeal to the CPC auction by all other bidders - the merger between Airport de Paris and TAV, the operator of Frankfurt Fraport Airport; ranked fourth - Manchester Airport and their Chinese partner; and Construction and Investment SSB with Copenhagen. The procedure is now at appeal level in the Supreme Administrative Court, with a hearing scheduled for May 7. In the context of the current aviation crisis, the Ministry of Transport has conducted an unofficial survey of the candidates to confirm their interest. The ministry did not provide further information as to who gave up, but according to Capital sources, it is likely to be a merger between the construction and investment SSB and Copenhagen Airport. In fact, the reason for the Ministry's consultation is that a year has passed and the bids have expired, the candidate's representative explained. Capital sought the winner for comment on the current aviation crisis and their interest in Sofia Airport.
Source: Capital (28.04.2020)

The concession of Sofia Airport has been signed The Minister of Transport and Information Technologies Rosen Zhelyazkov signed the concession contract for Sofia Airport. The concessionaire procedure was won by the Sof Connect consortium, with Munich Airport operator, which includes German, French and Austrian companies. The investments of the concessionaire will amount to not less than EUR 608 million for the term of the concession - 35 years. The aim will be improving and perfecting the level of service at Sofia Airport, ensuring reliability, accessibility, maintenance, safety, security, health and the environment. The Sof Connect consortium was selected by the Ministry of Transport, Information Technology and Communications as a concessionaire at Sofia Airport last summer. As early as July, however, the other four bidders who had submitted bids for the Sofia Airport concession - Manchester Airports Group, Airport de Paris, Fraport Bulgaria and SBB Sofia Airport, appealed to the Commission for Protection of Competition. (CPC).
Source: investor.bg (23.07.2020)

The EBRD is considering financing the modernization of Sofia Airport with EUR 85 million. The European Bank for Reconstruction and Development (EBRD) is considering financing the modernization of Sofia Airport with EUR 85 million. The borrower is the concessionaire of the airport SOF Connect AD - concept, managed by the French investment fund Meridian (99% share) and the capital based in Austria. The loan money will be used to "modernize and upgrade the country's strategic airport infrastructure." It will be part of a larger credit line worth EUR 250 million, provided jointly with other international financial institutions and commercial banks. The financing will support the participation of the private sector in the infrastructure sector in Bulgaria. The financial institution adds that the loan will provide long-term financing of projects for a long-term infrastructure asset, which is not easily accessible in Bulgaria by local or international commercial banks in the current crisis market environment. "Given that the project will be the first large-scale infrastructure concession in the country, the EBRD's presence in the process is key to ensuring successful implementation," the bank said. The contract to award the 35-year concession to Sofia Airport was signed in July, after a year earlier SOF Connect was ranked first among applicants wishing to operate the airport. Under the contract, the consortium is to invest EUR 608 million in the airport. At the signing of the document, the company revealed that it plans to build Terminal 1 and Terminal 2 in order to improve their operational efficiency. Terminal 1 will be renovated and Terminal 2 will be upgraded. The security check and the passport control for international flights will be enhanced with additional filters. The number of passengers at Sofia Airport decreased by nearly 60% on an annual basis to 259 thousand in September.
Source: economic.bg (29.10.2020)

SOF Connect has asked to acquire part of Sofia Airport The new concessionaire of Sofia Airport - the company SOF Connect - has started the procedure for acquiring part of the capital of the airport. Currently, the company Sofia Airport EAD is 100% owned by the Ministry of Transport, but according to the concession agreement signed in July this year, the private company can, and third parties, can acquire up to 40% of the airport. SOF Connect's intention is understood from an application to the Commission for Protection of Competition (CPC) to rule on the forthcoming concentration. According to the contract, the new concessionaire can acquire part of the airport operator within five years of its entry into force, and can subsequently transfer it to a third company - as long as this "reassigned" share does not exceed 20% and the company is a financial institution. Each new shareholder is subject to approval by the Ministry of Transport. Written statements on the transaction and its impact on market competition will be accepted in the CPC's office within seven days from the date of publication of the notice, after which the antitrust authority must issue a final decision. The contract for the assignment of the 35-year-old concession at Sofia Airport was signed in July, and a year earlier, the COF Connecticut was selected from the candidates wanting to manage the airport. The delay was due to complaints received by the CPC from other participants in the competition for the concession. The commission described them as unfounded, but the case was transferred to the Supreme Administrative Court (BAC), which, at the beginning of June, confirmed the commission's position. The investments of the concessionaire will be in the amount of not less than EUR 608 million for the term of the concession - 35 years, it was announced by the Ministry at the signing of the contract. They will be allocated to improve and enhance the level of service at Sofia Airport, ensure reliability, reliability, accessibility.
Source: economic.bg (03.11.2020)

Sofia Airport drastically raises fees The management of the still state-owned Sofia Airport EAD sent letters to the airlines informing them that it was opening the "process of consulting the amount and system of airport charges", which should come into force on January 1 and be valid until December 31 2021. This is done practically two months with a delay compared to the traditional date for their announcement - August 31. The published appendices show that a drastic increase in the fare for departing passengers is proposed (ie - in short "Passenger Fee") - from January 1 for a departing adult passenger on international routes it jumps by 60.3 %. Apparently, in order to stimulate domestic traffic, the airport management is setting a lower fee increase for departing passengers to Varna and Bourgas. For the use of the facility up to 60 minutes the fee increases by 56 euros - (47.8%). For parking in an operational parking lot during the day it falls by 48.5%, and at night - by 45%. The parking fee in the long-stay areas during the day is also reduced by almost 30%, and the parking fee in the same areas at night is kept unchanged. As a result, the planned revenues from "Landing Fee" and "Parking Fee" for next year are respectively EUR 12.244 million and EUR 2.370 million less than in 2019, which means that the costs of airlines for them will fall by a total of EUR 14,614 million. The amount of airport taxes for next year is based on the trends of air and passenger traffic in 2018-2019, the expected implementation of 2020, compared to the plan made a year ago, as well as a short-term forecast for 2021. The attached reports show that with 63 012 landings and take-offs planned for 2020, they are now expected to reach only 38,183, which is a decrease of nearly 39%.
Source: Banker (04.11.2020)

The CPC authorized the concession of Sofia Airport The Commission for Protection of Competition (CPC) has allowed the SOF Connect consortium to become a concessionaire at Sofia Airport and to manage it for the next 35 years. The decision enters into force immediately, but its legality can be appealed before the Sofia Administrative Court - within 14 days. The concession agreement was signed in July at the Ministry of Transport, but in order to enter into force, it must first be approved by the antitrust regulator. If it sees a risk to competition, the CPC has the right to block any transaction. However, the Commission sees no problem in this case. Here are the facts of its decision: SOF Connect AD was established on July 2 with a capital of BGN 50,000, distributed between three funds - Meridiam Investments, Meridiam Eastern Europe Investments, Meridiam Infrastructure Europe III, and the Austrian construction company Strabag. The criticism during the concession procedure was that there was no airport operator in this partnership as a shareholder. The explanation of SOF Connect AD was that in the management of the Sofia airport it will partner with Munich Airport, which had a contract with the Bulgarian Ministry of Transport for a period of at least 12 years. According to the annual activity report of Sofia Airport EAD, its revenues for 2029 exceed BGN 230 million.
Source: Sega (27.11.2020)