The capacity of the airport in the coastal city of Varna is to increase to five million passengers annually, predictions of the airports concessionaire Fraport Twin Star Airport Management show.

Passenger traffic is expected to increase in the coming 20 to 30 years, Fraport representatives said as quoted by Dnevnik daily.

Fraport is to be the concessionaire of both Varna and Bourgas airports. The new owner said it was ready to invest in the two facilities immediately. The company also has to provide an annual concession payment totaling 19.2 per cent of the total income from all airport activities.

The concession period was 35 years, Dnevnik reported.

Throughout the period Fraport plans to invest 403 million euro in the setting up of new passenger terminals. Investment by 2009 will reach 95 million euro.

A new Varna airport terminal will have a 2.5 million passenger capacity. Terminals in both Varna and Bourgas will be constructed by 2009, company representatives said.

Additional innovations were planned, Dnevnik reported. Among these were larger check-in areas, the purchase of new equipment and the provision of more services at the airports.