Greece has signed a 1.23 billion-euro ($1.34 billion) deal with a German-led consortium that will run 14 regional airports, including island tourist hotspots, for the next 40 years.

Fraport AG and its Greek partner, Copelouzos Group, said Monday's agreement will come into full effect in autumn 2016, when the consortium will pay the concession fee and take over the airports.

The deal is a key part of Greece's third multi-billion euro bailout deal, signed with European creditors in the summer.

The agreement includes the consortium paying an annual fee of initially 22.9 million euros, and investing 330 million euros in airport infrastructure until 2020.

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