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Old 13th Jan 2006, 11:12
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Helios / Alpha Air

Here's an interesting article appearing in today's Cyprus Mail electronic edition concerning a possible merger involving Helios, Eurocypria and, ultimately, Cyprus Air.


Mystery shrouds Helios-Eurocypria talks
By Jean Christou

MYSTERY yesterday shrouded a possible proposal by Helios Airways to be amalgamated into the new company the government will form when it buys Cyprus Airways (CY) subsidiary Eurocypria.

Reports on Wednesday said Finance Minister Michalis Sarris had met that afternoon with Andreas Drakos, the chairman of the Helios board to discuss “co-operation between the two airlines”.

The Ministry denied the reports yesterday, despite television footage purportedly showing Drakos and other Helios officials getting out of cars in the Finance Ministry’s underground car park.

In a written announcement, the Finance Ministry said no such meeting had taken place and that reports that it had did “not correspond to reality”.
However, the Cyprus Mail has learned that the proposal was raised with the government within the context of another meeting, which no one appears willing to talk about.

The idea that Helios, which lost an aircraft and 121 passengers and crew when it crashed into a hillside north of Athens on August 14 last year, could co-operate in some way with Cyprus Airways is not new and had been brought up before the accident.

When the government announced 10 days ago that it would be buying Eurocypria from Cyprus Airways, it was seen by Helios as a chance to resurrect the idea of co-operation. In fact, the Cyprus Mail has learned that the airline would favour complete amalgamation with Eurocypria to the extent that it would be willing to give it to the government in return for Helios shareholders having a stake in the new company that would be formed.

The idea is that the new company would not just be a government-owned airline, but would be more effective and independent. By taking Helios on board, Eurocypria would benefit from its infrastructure, which includes two Boeing 737-800s and several valuable landing slots at airports in the UK, including Heathrow, Luton and elsewhere.

However, Transport Minister Haris Thrasou told the Cyprus Mail last night that no such proposal had been presented to the government. “First of all Eurocypria, doesn’t belong to the government yet so how can we have negotiations with Helios while Eurocypria still belongs to Cyprus Airways?” he said.

Asked whether there was a possibility the Helios proposal could be considered, Thrasou said that, in his personal opinion, that would be premature.

“There are still investigations going on (into the crash),” he said. ‘It would not, in my opinion, be advisable to carry out negotiations with the company at this stage.”

In December 2004, Helios approached Cyprus Airways with a proposal to lease three planes from the national carrier’s now-defunct Athens-based subsidiary, Hellas Jet, one of the main causes for CY’s current financial troubles that have led to the sale of Eurocypria.

Helios offered Cyprus Airways $17 million to lease the three new aircraft from Hellas Jet, which was losing around £1 million a month at the time, but the proposal was rejected by CY, which is around 70 per cent owned by the government.

Helios is owned by the Libra Holiday Group (LHG), one of the biggest UK-based tour operators, which bought the airline in late 2004. LHG is listed on the Cyprus Stock Exchange.

The Helios crash cost Libra at least £5 million plus another £18 million the group wrote off in goodwill as a result of the accident, which resulted in group losses up until the end of October 2005 of £23.69 million compared to a profit of £2.58 million in the same period in 2004.

In relation to the £5 million Helios loss, LHG said it was contemplating suing third parties.


Copyright © Cyprus Mail 2005
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Old 14th Mar 2006, 11:58
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Grrr Helios re-branding and stopping scheduled flights?

HELIOS AIRWAYS is to cease flying but not trading, while its parent company Libra Holidays Group (LHG) intends to replace it with a new charter airline named A-Jet.

Still reeling after tragic crash that killed 121 passengers and crew north of Athens last August, Helios has been unable to fully recover and has caused multi-million in losses to LHG, which is listed on the Cyprus Stock Exchange.

The Helios crash cost Libra at least £5 million plus another £18 million the group wrote off in goodwill as a result of the accident, which resulted in group losses up until the end of October 2005 of £23.69 million compared to a profit of £2.58 million in the same period in 2004.

In relation to the £5 million Helios loss, LHG said it was contemplating suing third parties. But the company, one of the biggest UK-based tour operators said yesterday it is ready to create a new charter airline, which will use the aircraft and resources of Helios.

Libra chief executive Andreas Drakos told the Cyprus Mail yesterday it had applied for a licence for the creation of a new airline A-Jet.

“It’s not exactly ready yet,” he said but added that the company intended to make an announcement within days.

“We have been going through the normal processes of obtaining a licence for some time now,” Drakos said denying reports in Phileleftheros yesterday that they were bypassing normal procedures.

Drakos said Helios would remain on the books as a trading company but cease flying.

“Helios will remain as a company, a subsidiary of Libra to support the investigating committee and to pursue claims against third parties but cease carrying out operations,” Drakos said.

He said A-Jet would be mainly carrying out charter flights, unlike Helios, which also operated scheduled flights.

“Our business as a group is to bring people (tourists) in from the UK and Europe. This will be a new company,” he said.

An announcement from the Civil Aviation Department yesterday said that in January this year an application had been submitted by representatives of Helios to transfer the assets of the company to a company A-Jet.

“This application was rejected by the Department of Civil Aviation, because it was not compatible with the relevant European regulations,” said the announcement.

It said that last month the Department then received an application from the company A-Jet for a licence, along with the relevant documents.

“The technical aspects of the application is being examined by the Department of Civil Aviation, while for the legal aspects are the subject of a letter to the Attorney-general’s Office for his opinion” said the announcement.

It added that just because a process had begun for a licence did not imply the outcome would be successful or within a specified time period.

“This depends whether all of the technical and other conditions have been satisfied and also relevant EU regulations,” the Civil Aviation Department said, adding that it was handling the case with responsibility and having in mind the public interest and sensitivity.

Results of the Helios crash investigation are not due out at least until the end of April.
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Old 14th Mar 2006, 12:12
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More on R&N
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Old 20th Mar 2006, 10:31
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Helios rebrands as Alpha Jet

Alpha Jet is the new name for Helios and there is a photo of there new livery here

Last edited by Evileyes; 20th Mar 2006 at 13:10.
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Old 20th Mar 2006, 13:31
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Tail looks a bit close to the runway on rotation there!
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Old 20th Mar 2006, 13:40
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According to Agence-France Presse, the Cypriot Government have put on ice ajet's application for an operating licence, banned them from operating a test flight last Friday and are conducting an investigation into how they were able to schedule the flight in the first place, without a licence (ie did they have the agreement of the Cyprus CAA).

Could turn out to have been an expensive paint job.
 
Old 20th Mar 2006, 15:31
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Although the aircraft was painted in the new livery, the flights on Saturday and yesterday still operated as Helios flights - i.e. on the current AOC.
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Old 20th Mar 2006, 20:58
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Call me a cynic if you like, but..........

On the basis of the report into the accident, which in places defies logical imagination, Helios is in need of a LOT more than a change of name and paint if it's going to have any credibility in the future.

I don't think there's an icon in that list over on the right to express how I respond to the findings of the investigation.
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Old 21st Mar 2006, 08:32
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Fellas, I've been posting articles about this rebranding on the second Helios thread ... the Re-enactment. I did not start a new thread because the crash and the rebranding are so interconnected.

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Old 21st Mar 2006, 08:44
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I hear there's going to be another rebranding in that part of the world. Look out for Pantheon Airways.
 
Old 21st Mar 2006, 09:31
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Yes, and I'm not happy about it. Does that mean that Olympic will give up its five-rings logo? There should be some local screaming about that ... it's part of the country's national identity.
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Old 21st Mar 2006, 09:43
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Six rings ...
 
Old 21st Mar 2006, 09:45
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Originally Posted by big fraidy cat
Yes, and I'm not happy about it. Does that mean that Olympic will give up its five-rings logo? There should be some local screaming about that ... it's part of the country's national identity.
6 rings
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Old 21st Mar 2006, 10:24
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Ooops, I lost a ring ... probably the dog ate it !!
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Old 21st Mar 2006, 10:46
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Given that the IOC* will sue the pants off anyone who takes the Ol*mp*c name in vain or dares to use the image of the rings, maybe they will make a generous donation to Pantheon for freely relinquishing these symbols.
*International Ol*mp*c Committee, nothing to do with flying
 
Old 21st Mar 2006, 10:49
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Interesting suggestion. However, the actual Olympic rings are five in total; probably why Olympic Air(lines/ways) had to use six. I wonder if they needed to get permission for that.
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Old 21st Mar 2006, 11:46
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I think when OA was founded (1957?) the IOC had not yet discovered the money-making opportunities in 'branding' the Games (I think Games with a capital G is also a registered trademark).
However I am sure that when the OG became Big Business (LAX 84 onwards?) they must have regarded this airline flying round with 'their' name and 'their' rings with some distaste. In fact I can half recall an OA person telling me that it was the source of some political agitation by the IOC.
IIRC the sixth ring represented the sixth continent (S. America) that OA might fly to one day, or so they thought at the time they designed it. They did, of course, fly to Australia once upon a time.
 
Old 22nd Mar 2006, 17:02
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Here's a belated post from yesterday's Cyprus Mail. The Cyprus Mail is staying very close to the story of the Helios attempt to rebrand. In fact, on Monday, I saw a photo of the new "a-jet" livery as it departed Luton on 18 March. I think it's very interesting that a company would go to the expense of changing its livery, without having first secured an operating license. Guess they thought that getting the license was gonna be easy!



Is there some invisible hand that is lifting ajet into the skies? By Elias Hazou

CONFUSION still reigned yesterday as to how ajet, the heir apparent to beleaguered Helios Airways, was cleared for a test flight last week that was cancelled on the eleventh hour.
Libra Holdings Group (LHG) which is one of the biggest UK-based tour operators and which owns Helios, had announced on March 13 that it was ready to create a new charter airline under the name of ajet, which will use the aircraft and resources of Helios.

Still reeling after last August’s tragic crash, Helios has been unable to fully recover and has caused multi-million in losses to LHG, which is listed on the Cyprus Stock Exchange.

The probe on the airline disaster is due sometime in April.

Last week news broke that ajet had secured permission to carry out a “proving flight,” a necessary step to establishing the airworthiness of an airline. Immediately that turned attention to the Civil Aviation Authority, as its consent was necessary for the test flight.

Assuming the test flight had gone ahead, ajet would have received an AOC (Air Operator’s License). But to commence actual operations, it would then also need a commercial license.

The above explanation was made yesterday by the Transport Ministry’s permanent secretary Makis Constantinides, who is leading a government inquiry into the contentious test flight.

“At first sight, it seems the airline and Civil Aviation were incommunicado,” Constantinides told state radio.

The flight had been scheduled for Thursday, but just two days earlier ajet received word from civil aviation that their request was denied. According to ajet, the Civil Aviation did not explain why, with one official telling the company the flight was cancelled “for other reasons he could not disclose.”

That development immediately followed the media coverage of ajet’s intended launch, raising suspicion that authorities – who up until then had been in cahoots with the airline – were now covering their tracks because of the public backlash.

The word on the street is that “orders from above” (the Transport Ministry) led to the flight being scrapped.

Documents obtained by Phileleftheros show that civil aviation approved the test flight as far back as March 7. According to the paper’s sources, on March 9 the department sent a letter to the Attorney-general’s office for clarifications.

Yesterday Attorney-general Petros Clerides said his office received the letter last Friday (March 9), that is, after the scheduled date of the test flight.

Reports say that Transport Minister Harris Thrasou is furious with civil aviation’s delay in asking for Clerides’ opinion.

The big question was whether corners were cut – and by whom. According to ajet’s sales manager Nicos Anastassiades, the company did everything by the book and received no favours from civil aviation.

“Contrary to media speculation, our application for an AOC was not processed in record time,” Anastassiades insisted yesterday.

“We have not yet applied for a change of name. We have only applied for the creation of a new company. ajet does not exist as a commercial airline.”

Meanwhile on Sunday a Helios Airways plane flying under the livery of ajet made the Larnaca-Luton roundtrip. Although it is not uncommon for a plane to operate under the code of another airline, reports said that the printed material inside the aircraft (such as emergency manuals) also sported the ajet logo and colours.

DISY deputy Giorgos Georgiou yesterday urged the government to come clean and explain to the public whether Helios was being allowed to evolve into another airline while the victims’ relatives were still in mourning.

“Mr Thrasou’s handling of the matter is disappointing,” remarked Georgiou.

“On the one hand we have assurances that ajet has not received permission to fly, and on the other hand we see them touching down and taking off from airports. What’s going on?”
“Is there some invisible hand that is lifting ajet into the skies?” mused Georgiou.
In the meantime angered relatives and friends of the victims want the apparent evolution of Helios Airways into another airline to be stopped in its tracks.

Yesterday a delegation of the relatives met with Attorney-general Petros Clerides to voice their concerns that such a development might complicate or even derail legal proceedings they plan to take against the airline.

Spokesman for the relatives Nicolas Yiasoumis said after the meeting they were “satisfied” with the Attorney-general’s stance on the matter.


Copyright © Cyprus Mail 2005
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Old 22nd Mar 2006, 17:07
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Below is today's article from the Cyprus Mail about the rebranding of Helios to ajet, followed by two snippets which they published from the Greek Press relating to the same subject.


‘Ajet application was rushed through’
By Elias Hazou

THE CIVIL aviation department responsible for issuing air operator licences (AOC) to airlines was kept in the dark about ajet’s application for a test flight last week, cancelled at the eleventh hour after the personal intervention of Transport Minister Harris Thrasou.

The revelation was made yesterday by daily Phileleftheros, which claimed to be in possession of an internal civil aviation document drafted by Charalambos Hadjigeorgiou, the head of the licensing department.

Hadjigeorgiou was in the news shortly after last August’s Helios Airways crash, when he made stunning allegations about shortcomings in the department’s safety procedures. Among other things, he claimed that no in-flight checks had been carried out on any aircraft in Cyprus in the 10 months before the accident.

At the time, however, Hadjigeorgiou was discredited by his superiors, including Transport Minister Harris Thrasou, who questioned his motives.

But yesterday Thrasou confirmed the existence of Hadjigeorgiou’s memo. He then went a step further, conceding that certain individuals inside the civil aviation department had acted overzealously in giving ajet – the apparent successor to Helios – approval for the test flight.

“Yes, it seems that certain people inside the department were trying to rush things,” Thrasou commented.

Apart from being in bad taste, Helios’ transformation to ajet has caused uproar among the relatives of the air disaster’s victims, who view it suspiciously as an attempt by the company to evade criminal liability.

Previously, Phileleftheros had published ajet’s application for the contentious test flight; the photo contained a stamp of the civil aviation with the words “application approved.”

In his memo, Hadjigeorgiou complained that he was alerted to ajet’s request for an AOC by the media reports surfacing early next week.

“Up until today [March 13] the licensing department has not been informed of ajet’s application for an AOC, as is mandatory by the procedures of the Civil Aviation Department,” Hadjigeorgiou wrote.

He added: “These untransparent procedures and this selective sidelining of departmental officers entail legal risks for the Civil Aviation Authority and do not promote the professed upgrading of the department’s safety measures.”

Assuming there is truth to these allegations, it would suggest that certain quarters within civil aviation wanted to side-step Hadjigeorgiou, who has earned a reputation as a whistleblower and has likely alienated many colleagues inside the department.

Meanwhile media reports yesterday insisted that corners were cut in expediting ajet’s aspirations to gain an AOC.

On March 9 the department sent a letter to the Attorney-general’s office for clarifications on whether ajet’s applications posed any legal complications vis a vis the mother company’s responsibilities with regard to the air crash.

However, AG Petros Clerides said his office received the letter only last Friday (March 9), that is, after the scheduled date of the test flight, which had been approved as far back as March

It turned out that the hand-delivered letter took as long as 15 days to reach the AG; according to Phileleftheros, that was about the same amount of time it took for the relevant Civil Aviation Department to inspect the technical data submitted by ajet – manuals, personnel, organisational chart, maintenance and quality standards, etc.

In order to be able to fly, an airline must secure an AOC (which covers technical requirements) but also a commercial licence. The test flight, or ‘proving flight’ as it is called in the aviation business, is the last step towards acquiring an AOC.

“It looks as if civil aviation acted with the speed of light to approve the test flight,” noted DISY deputy Giorgos Georgiou yesterday.

“Had their cover not been blown by last week’s press reports, the flight would have happened and no one would be any the wiser,” he added.


Copyright © Cyprus Mail 2005

-------------------------------------------------------

PHILELEFTHEROS: “They had them in the dark”. The Licence Authorisation Department, one of three Civil Aviation Department sectors which has the responsibility of inspecting and consenting to the publication of any and all permits for aviation operations, was not only not notified that inspections had finished and that the permit had already been authorised for the final stage, which is the test flight, but were also never informed of ajet Company’s application.

HARAVGHI: “Red light for ajet”. The Minister of Communications has switched the red light for ajet in all procedures concerning permit authorisation who, after immediately having been notified of the scheduled test flight, gave instructions for the flight to be cancelled, adding that no procedure for any permit authorisation take place for this particular company before he receives the Attorney general’s opinion on the matter.


Copyright © Cyprus Mail 2005
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Old 23rd Mar 2006, 08:21
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From the Cyprus Mail today, there is a little more clarification on the recent media frenzy over the pending investigation report, as well as the issues of the rebranding.

Speculation is a dangerous sport
By Elias Hazou

Greek investigator warns media over Helios reports

COSTAS Orfanos, head of the Cypriot air-accident investigating team, yesterday warned of the dangers of media guesswork on the August 14 crash that killed 121 people.

Over the past few days Greek newspapers and television networks have claimed to be in possession of the draft of the probe being carried out by chief air investigator Akrivos Tsolakis.

Various versions of the story have seen the light of day, some placing emphasis on the Cypriot Civil Aviation Authority, others blaming everyone from Boeing, to local authorities to European air safety agencies.

The latest report by Greek public broadcaster NET on Tuesday night said that human error was “98 per cent responsible” for the tragedy.

But Orfanos dismissed all this as idle speculation.

“I have spoken with Mr Tsolakis, and he has assured me that the draft report is not done yet. Some important areas still need to be covered.”

According to Orfanos, the preliminary report should be ready by April and the final, official report by June.

“Therefore, we advise patience and caution. These media reports may be inaccurate, and often resort to hyperbole. I’m not saying they are all false. But even if some are true, you cannot use them out context.”

His sentiments were echoed by Nicolas Yiasoumi, spokesman for the committee set up by the victims’ relatives.

“All we want is for the truth to shine. We hope some quarters will not take advantage of these reports to promote their agendas, whatever they may be.”

Yiasoumi also lambasted authorities for the apparent fiasco in almost allowing ajet – the successor to Helios Airways – to carry out a test flight last week.

The flight was cancelled on the eleventh hour by Transport Minister Harris Thrasou amid public outcry that the airline might get away with murder by evolving into a new company.

“We are disappointed with the Transport Ministry and civil aviation for the way they handled the whole affair,” Yiasoumi said.

“The last thing we want is for the issue to be politicised,” he added.

He said relatives of the victims were planning to meet with Thrasou and next with President Papadopoulos as soon as he returned from abroad.

Meanwhile yesterday some things began to clear up with regard to ajet’s controversial test flight.

The flight was cleared by civil aviation, and would have been the last step toward the company receiving an AOC (air operator’s licence).

However, it seems civil aviation did inform the company that it first needed to check whether the transformation to ajet did not let the airline off the hook with regard to its responsibilities for last August’s crash.
Ajet was told that if the Attorney-general gave them the green light on this point, then civil aviation would issue the airline an AOC. It was on this understanding that the test flight was allowed to take place.

Legal sources also said that it did not matter whether the airline concerned was ajet or Helios, as its insurers were the same and therefore any damages claims by relatives of the victims would not be jeopardised.

Nevertheless, it remains a mystery why the civil aviation department responsible for licensing was left in the dark about the test flight.

But in the panic ensuing from the news reports on the test flight, Transport Minister Harris Thrasou ordered an inquiry, pledging that heads would roll.

Thrasou himself appeared unsure about the details of regulations when the matter first surfaced. Commentators conceded yesterday that the initial media reaction may have been over the top.


Copyright © Cyprus Mail 2005
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