Greece has formally completed the transfer of 14 regional airports to a consortium led by Germany's Fraport AG, in a privatization that is a key element of the country's bailout program.

The Greek state privatization agency says that under the deal signed Tuesday the consortium has paid a 1.23 billion-euro ($1.3 billion) lump sum.

It said additional state revenues from an annual lease and a share in airport earnings will reach a total 10 billion euros ($10.62 billion) over the 40-year concession period.

The deal has already been cleared by the European Commission. It had been initially due to come into effect last year.

The 14 airports are Thessaloniki — Greece's second largest city — Mykonos, Santorini, Rhodes, Corfu, Zakynthos, Kefalonia, Kos, Lesbos, Skiathos, Samos, Chania, Kavala and Aktio.