The Parliament's Standing Committee on Production and Trade of Greece has approved the legislation the ratifies the contract for the development of the new international airport in Kastelli on Crete. Despite some objections to the project, the committee gathered the majority of approval for the plan. The new Kastelli International Airport will be the largest construction project ever on Crete and would be one of the largest private investments in the country. 

The new airport will replace the existing Nikos Kazantzakis International Airport in the city of Heraklion on Crete Island, which has been operational since 1937. It has a single runway, a small terminal building, and old air and landside facilities, which are no longer sufficient to serve the growing air traffic in the country. The new airport is expected to improve the country’s tourism industry and economy. Initially, the new Kastelli airport will handle nine million local and international passengers a year, while its maximum handling capacity will be 15 million passengers a year. 

The development of the project was awarded to the single bidder, Ariadne Airport Group, a joint venture of GEK Terna and India-based GMR Airports Limited.  Total investment for the project is about EUR850 million (US$955 million). 

The Kastelli International Airport will have two 3.2-km runway, an apron area of 400 acres which will be able to house 44 aircraft, and a terminal building that will have five levels occupying a total area of ​​72,000 square meters of which 13,000 square meters are intended for commercial use and 1,100 square meters are dedicated as a permanent exhibition space. The terminal building will be able to accommodate between 57,500 and 65,000 passengers a day initially. The project will also include a 15,000m² cargo terminal building.

The construction and upgrading of existing roads within the vicinity of Kastelli Airport will be included in other works.  

The project will have a 35-year concession period including an initial five-year construction phase. It will be funded through a mix of equity, accruals from the existing airport and a financial grant provided by the Government of Greece.

The Government of Greece as the contracting authority is represented by the Ministry of Development & Infrastructure, Transport and Networks, and the Hellenic Civil Aviation Authority.