Olympic Airlines/Air
Join Date: Jul 2001
Location: Europe
Posts: 5
Likes: 0
Received 0 Likes
on
0 Posts
Let me remind everyone of some facts concerning Olympic (Airways-Airlines) case.
1. Olympic is a state owned, flag carrier. Like every other 100% state owned company, Olympic suffers from "diseases" called POLITICIANS. All the Greek goverments from 1975 were using Olympic for their own purposes. Recently an Air Transport university professor mr Lainos made an account of all the money that the state owns Olympic from various things like newspapers transport, free traveling for state employees, presidential flights etc. The sum is 2 billion Euros!
2. EU rules is something that surely does not apply to everyone. Alitalia, Air France and Iberia cases can verify that. Ask Mr Berlouskoni for legal ways around them...
3. Aegean Airlines is a good REGIONAL company. Mr Vasilakis has put a great effort in making some room in the Greek air transport market for his company. Somehow he "conviced" the politicians to shrink Olympic so Aegean could have a piece of the pie. I like this guy. He's using the system from within!
But this is a professional pilots forum so I think we should be focusing on how the Aegean pilots feel...
4. Greece is not ready to let Olympic go down. The political cost is too high.
5. Olympic has too many problems but all of them are results from a bad (state) management. If the goverment really wants Olympic to survive, the company has to be sold immediately. Then with a real boss above Olympic (and not some stealing gang called political party) will show its potential.
6. The marketlevel in Greek air transport market is something that this very good bussinesman Mr Vassilakis has invented. He decided that his professional pilots are not worth paying them more than greek taxi drivers so he set the numbers accordigly.
7. I don't really know if HALPA is yet open to every pilot from all companies, I think they are in the process of that. If not I agree that HALPA should not represent Greek pilots in IFALPA. Maybe we should send AEGEAN PILOTS ASSOSIATION....
GreekPilot747 do you have their number ;-)
1. Olympic is a state owned, flag carrier. Like every other 100% state owned company, Olympic suffers from "diseases" called POLITICIANS. All the Greek goverments from 1975 were using Olympic for their own purposes. Recently an Air Transport university professor mr Lainos made an account of all the money that the state owns Olympic from various things like newspapers transport, free traveling for state employees, presidential flights etc. The sum is 2 billion Euros!
2. EU rules is something that surely does not apply to everyone. Alitalia, Air France and Iberia cases can verify that. Ask Mr Berlouskoni for legal ways around them...
3. Aegean Airlines is a good REGIONAL company. Mr Vasilakis has put a great effort in making some room in the Greek air transport market for his company. Somehow he "conviced" the politicians to shrink Olympic so Aegean could have a piece of the pie. I like this guy. He's using the system from within!
But this is a professional pilots forum so I think we should be focusing on how the Aegean pilots feel...
4. Greece is not ready to let Olympic go down. The political cost is too high.
5. Olympic has too many problems but all of them are results from a bad (state) management. If the goverment really wants Olympic to survive, the company has to be sold immediately. Then with a real boss above Olympic (and not some stealing gang called political party) will show its potential.
6. The marketlevel in Greek air transport market is something that this very good bussinesman Mr Vassilakis has invented. He decided that his professional pilots are not worth paying them more than greek taxi drivers so he set the numbers accordigly.
7. I don't really know if HALPA is yet open to every pilot from all companies, I think they are in the process of that. If not I agree that HALPA should not represent Greek pilots in IFALPA. Maybe we should send AEGEAN PILOTS ASSOSIATION....
GreekPilot747 do you have their number ;-)
Join Date: Jan 2002
Location: Greece
Posts: 34
Likes: 0
Received 0 Likes
on
0 Posts
Olympian you have some very valid points here.
Believe me I do not want OA to shut down, I have friends there.
You mention one thing that is a main problem here:
"Political cost"!
To me it translates to the inability of the greek state to be governed, and see some reforms and progress realized.
As long as politicians only decide with their reelection in mind, Greece is condemned to fail in the longterm.
As long as members of parliaments´ main occupation is to provide employment for voters, politics is being held hostage by exactly these voters when election day comes up. Sometimes companies go through difficult times and unpopular measures are adequate to ensure their survival.
As for the debts of the greek state towards OA: How many times, have OA´s debts been written off? Again and again and again.
Still the company only accumulates losses. So something is wrong in the setup. Is there a will to change something?
If not, I am pessimistic about the outcome.
And by the way the "Uncle from America" does not seem to be the solution. A few weeks ago these people had a hard time, to prove they have the financial strength to buy OA. Now they claim, they can buy OA, takeover the burden of returning the money demanded by the EU to the state, and not lay off anybody.
Has it ever occured to you, that these people are just an excuse, to prevent the bomb going off while it is in the hands of the state.
To me it looks like the government might let them take over, so when the 5hit hits the fan, they are not involved any more.
No "political cost" in that case....
Believe me I do not want OA to shut down, I have friends there.
You mention one thing that is a main problem here:
"Political cost"!
To me it translates to the inability of the greek state to be governed, and see some reforms and progress realized.
As long as politicians only decide with their reelection in mind, Greece is condemned to fail in the longterm.
As long as members of parliaments´ main occupation is to provide employment for voters, politics is being held hostage by exactly these voters when election day comes up. Sometimes companies go through difficult times and unpopular measures are adequate to ensure their survival.
As for the debts of the greek state towards OA: How many times, have OA´s debts been written off? Again and again and again.
Still the company only accumulates losses. So something is wrong in the setup. Is there a will to change something?
If not, I am pessimistic about the outcome.
And by the way the "Uncle from America" does not seem to be the solution. A few weeks ago these people had a hard time, to prove they have the financial strength to buy OA. Now they claim, they can buy OA, takeover the burden of returning the money demanded by the EU to the state, and not lay off anybody.
Has it ever occured to you, that these people are just an excuse, to prevent the bomb going off while it is in the hands of the state.
To me it looks like the government might let them take over, so when the 5hit hits the fan, they are not involved any more.
No "political cost" in that case....
Join Date: Aug 2000
Location: ATHENS-GREECE
Posts: 39
Likes: 0
Received 0 Likes
on
0 Posts
Greek pilot 747, you must be one of "us", eh?
Olympic Airlines, will not bust! That if 100% shure!
As mentioned by others, OA will survive, after the privatization, with a 35% of gov. shares! (just to quarantee....)!
According to the pilot's life in Aegean, well!
If someone has a "problem" with the managemant , the solution is :
Simulator check in Germany, by an 75 year old German ex-pilot "excecutioner".! This is the way that Vasilakis management acts against those poor pilots!
Management conducted by ex-tavern keeper!
No thanks! This is crap!
I'd rather fly Goose in Alaska, than 737 in Aegean!
Olympic Airlines, will not bust! That if 100% shure!
As mentioned by others, OA will survive, after the privatization, with a 35% of gov. shares! (just to quarantee....)!
According to the pilot's life in Aegean, well!
If someone has a "problem" with the managemant , the solution is :
Simulator check in Germany, by an 75 year old German ex-pilot "excecutioner".! This is the way that Vasilakis management acts against those poor pilots!
Management conducted by ex-tavern keeper!
No thanks! This is crap!
I'd rather fly Goose in Alaska, than 737 in Aegean!
Join Date: Jan 2002
Location: Greece
Posts: 34
Likes: 0
Received 0 Likes
on
0 Posts
Tell me who "us" are and I tell you if I am part of it.
I am glad to hear OA will be around 100% sure to employ some bright aviators(no irony, some guys there are excellent).
We will see, who will participate in the next scheme.
However if it is greek stateowned banks forced to take a share, plus the government, then we should not be talking about privatization.
Pilot´s life in Aegean: I feel sorry if guys failed their sim in Germany. However I cannot comment on this, since I was not observing their sim-sessions, nor do I know about their relations
with management.
About ex-tavern keeper: I might know more about that, than you think. It seems in the private sector, you are what you declare you are.
In contrary in other airlines, you are what your father is, or who you vote for...
No thanks! This is nepotism, or in the other case lifelong a55licking of politicians.
I would rather enjoy the sunset from my home´s terrace.
By the way, I hope you get the payout, you were promised on retirement. Not keeping that promise is a crime in my oppinion.
All the best!
I hope we can have a drink over this one day, but please, do allow me to have my own oppinion. It has nothing to do with wishing OA go bust. Rather with assessing the situation without wishful thinking.
I am glad to hear OA will be around 100% sure to employ some bright aviators(no irony, some guys there are excellent).
We will see, who will participate in the next scheme.
However if it is greek stateowned banks forced to take a share, plus the government, then we should not be talking about privatization.
Pilot´s life in Aegean: I feel sorry if guys failed their sim in Germany. However I cannot comment on this, since I was not observing their sim-sessions, nor do I know about their relations
with management.
About ex-tavern keeper: I might know more about that, than you think. It seems in the private sector, you are what you declare you are.
In contrary in other airlines, you are what your father is, or who you vote for...
No thanks! This is nepotism, or in the other case lifelong a55licking of politicians.
I would rather enjoy the sunset from my home´s terrace.
By the way, I hope you get the payout, you were promised on retirement. Not keeping that promise is a crime in my oppinion.
All the best!
I hope we can have a drink over this one day, but please, do allow me to have my own oppinion. It has nothing to do with wishing OA go bust. Rather with assessing the situation without wishful thinking.
Join Date: Aug 2005
Location: tinos greece
Posts: 290
Likes: 0
Received 0 Likes
on
0 Posts
Can someone tell me with 100% certainty that the potential new buyer (the consortium) will also inherit the EU debt? Or, will the proceeds of the purchase price be paid over to the EU by the State? In other words, exactly what is the buyer buying and what is the buyer liable for?
Ooops, looks like I've answered my own question. There are two articles in the Athens News that appear online today. The second article features a bit of an interview with the potential new buyers. Apparently, their deal does not include assuming and paying the debt. Maybe that's why the government hasn't committed to this yet. They don't want to pay the EU debt either.
Here's the link: http://www.athensnews.gr/athweb/nath...=03&m=A19&aa=1
Ooops, looks like I've answered my own question. There are two articles in the Athens News that appear online today. The second article features a bit of an interview with the potential new buyers. Apparently, their deal does not include assuming and paying the debt. Maybe that's why the government hasn't committed to this yet. They don't want to pay the EU debt either.
Here's the link: http://www.athensnews.gr/athweb/nath...=03&m=A19&aa=1
Last edited by big fraidy cat; 27th Sep 2005 at 11:51.
Join Date: Aug 2000
Location: ATHENS-GREECE
Posts: 39
Likes: 0
Received 0 Likes
on
0 Posts
About what is going on, nobody knows!
What I think, and the most propable, is that the gov, will keep 35% of a NEW company, free of "charges" (as Swissair did), with banks (privetly owned), and maby 1-2 Greek bussiness men. The PM does'nt want to give the company to someone who cannot quarantee the future of OA. And as Greece is a country which is depended from tourism, a National Carrier is a must, according to ALL tourist organisations and operators.
About AEGEAN "procedures" with their pilots, I don't care at all. They want this, they can keep it! And about the ex tavern man, well, i dont like the way he acts with his fellows. But this is another story, and it does not consern me.
Greekpilot747, tell me a place in the globe, where axiocraty is a must, and politicians, or massony, do not count!
According to OA, well, some pilots are "sons" of older pilots, and of course, in the seniority, are all at high numbers, even if they had problems in their training, or 1/10th of the experience of other fellows!
This is life......(and I am not a "son", but a pilot who when joined OA with 3500 hours, was placed 25 positions behind a 350 hours SON)!
And as the time passes, it is proven that for the same "misshap", a SON will pass the fence with no harm, an an "ordinary" pilot, will be hanged by his b...s!
What I think, and the most propable, is that the gov, will keep 35% of a NEW company, free of "charges" (as Swissair did), with banks (privetly owned), and maby 1-2 Greek bussiness men. The PM does'nt want to give the company to someone who cannot quarantee the future of OA. And as Greece is a country which is depended from tourism, a National Carrier is a must, according to ALL tourist organisations and operators.
About AEGEAN "procedures" with their pilots, I don't care at all. They want this, they can keep it! And about the ex tavern man, well, i dont like the way he acts with his fellows. But this is another story, and it does not consern me.
Greekpilot747, tell me a place in the globe, where axiocraty is a must, and politicians, or massony, do not count!
According to OA, well, some pilots are "sons" of older pilots, and of course, in the seniority, are all at high numbers, even if they had problems in their training, or 1/10th of the experience of other fellows!
This is life......(and I am not a "son", but a pilot who when joined OA with 3500 hours, was placed 25 positions behind a 350 hours SON)!
And as the time passes, it is proven that for the same "misshap", a SON will pass the fence with no harm, an an "ordinary" pilot, will be hanged by his b...s!
Join Date: Feb 2003
Location: Mt. Olympus
Age: 59
Posts: 80
Likes: 0
Received 0 Likes
on
0 Posts
OLYMPIC REACTION
OA pilots accuse Aegean of trying to mar plans to save state carrier
Olympic Airlines (OA) pilots yesterday accused rival carrier Aegean Airlines of trying to sabotage attempts to save the ailing national carrier. The pilots’ comments followed a recent statement by Lufthansa that it may cooperate with Aegean in handling some of OA’s routes. (Lufthansa stressed that it was not interested in buying a majority stake in OA.) The pilots claimed Aegean had participated in tenders with the aim of lodging complaints against OA with the European Union, not with the interest of an investor.
link
TR
-------------------------------------
ThinkRate! ThinkRate! Don't Think!
OA pilots accuse Aegean of trying to mar plans to save state carrier
Olympic Airlines (OA) pilots yesterday accused rival carrier Aegean Airlines of trying to sabotage attempts to save the ailing national carrier. The pilots’ comments followed a recent statement by Lufthansa that it may cooperate with Aegean in handling some of OA’s routes. (Lufthansa stressed that it was not interested in buying a majority stake in OA.) The pilots claimed Aegean had participated in tenders with the aim of lodging complaints against OA with the European Union, not with the interest of an investor.
link
TR
-------------------------------------
ThinkRate! ThinkRate! Don't Think!
Join Date: Jan 2002
Location: Greece
Posts: 34
Likes: 0
Received 0 Likes
on
0 Posts
Greek Media report that talks with the preferred bidder Olympic Investors have failed.
Private banks in Greece have been approached to take a share in a future scheme, but have no interest.
Most likely 3 stateowned banks are going to be participating in a future scheme. The scheme shall be open to other shareholders from institutions involved in tourism for example.
Seems the regional operation has the best chances of survival as it is at present.
Longrange more than questionnable to be continued, even the mediumrange jetfleet might be downscaled.
Meanwhile pilots are starting to jump ship.
On the other hand management is confident they can survive somehow, and encouraging the public to make reservations on OA. OA management is considering legal resitance to EU-commission´s recent rulings.
The thought of some greek regions, that are exclusively served by OA, losing their connections to the mainland is a major headache for the government and local institutions.
Just now found this online:
I am quoting from greek economic newspaper Naftemporiki.
It seems like the go-ahead has been given by the greek government to set up a mixed scheme with a very limited activity in the domestic and international network.
Although nothing has leaked from talks in the last days, well informed sources say the government has agreed with an important greek businessman to take over the management of the future scheme, and greek banks being the shareholders.
Private banks in Greece have been approached to take a share in a future scheme, but have no interest.
Most likely 3 stateowned banks are going to be participating in a future scheme. The scheme shall be open to other shareholders from institutions involved in tourism for example.
Seems the regional operation has the best chances of survival as it is at present.
Longrange more than questionnable to be continued, even the mediumrange jetfleet might be downscaled.
Meanwhile pilots are starting to jump ship.
On the other hand management is confident they can survive somehow, and encouraging the public to make reservations on OA. OA management is considering legal resitance to EU-commission´s recent rulings.
The thought of some greek regions, that are exclusively served by OA, losing their connections to the mainland is a major headache for the government and local institutions.
Just now found this online:
I am quoting from greek economic newspaper Naftemporiki.
It seems like the go-ahead has been given by the greek government to set up a mixed scheme with a very limited activity in the domestic and international network.
Although nothing has leaked from talks in the last days, well informed sources say the government has agreed with an important greek businessman to take over the management of the future scheme, and greek banks being the shareholders.
Join Date: Aug 2005
Location: tinos greece
Posts: 290
Likes: 0
Received 0 Likes
on
0 Posts
The following article appeared in Reuters today. Sounds a bit like the same old story, but with, presumably, a new name. What will it be now? They've done Olympic Airways and Olympic Airlines. Guess it will be simply Olympic Air ... a good idea, in case they have to reorganize that one. Then they'll be down to plain old 'Olympic.'
I still hope that they consider handling the domestic and international services with separate management teams.
News article follows:
Greece mulls relaunch of Olympic Air -paper
Wednesday 12 October 2005, 3:02am EST
Printer Friendly | Email Article | Reprints | RSS
ATHENS, Oct 12 (Reuters) - Greece may relaunch Olympic Airlines as a new company as talks to sell the ailing carrier to investment group Olympic Investors-York capital seem to have stalled, financial daily Naftemporiki reported on Wednesday.
"Well-informed sources cite an agreement with a Greek businessman, whose company will take over management of Olympic, while Greek banks will participate in (the new company's) share capital," the paper said.
Greece is scrambling to find a solution for its flag carrier [OLY.UL] after a European Commission ruling last month required Olympic Airways and its successor Olympic Airlines pay back as much as 540 million euros ($645 million) in illegal state aid.
The paper said the new company would be jointly owned by the government and private investors but the exact stake the government will hold has yet to be finalised.
Greek Transport Minister Michael Liapis said last month the EU Commission's ruling hindered Olympic's privatisation but while the government would spare no effort to sell it, it would also look into alternative solutions for the day after.
© Reuters 2005. All Rights Reserved.
I still hope that they consider handling the domestic and international services with separate management teams.
News article follows:
Greece mulls relaunch of Olympic Air -paper
Wednesday 12 October 2005, 3:02am EST
Printer Friendly | Email Article | Reprints | RSS
ATHENS, Oct 12 (Reuters) - Greece may relaunch Olympic Airlines as a new company as talks to sell the ailing carrier to investment group Olympic Investors-York capital seem to have stalled, financial daily Naftemporiki reported on Wednesday.
"Well-informed sources cite an agreement with a Greek businessman, whose company will take over management of Olympic, while Greek banks will participate in (the new company's) share capital," the paper said.
Greece is scrambling to find a solution for its flag carrier [OLY.UL] after a European Commission ruling last month required Olympic Airways and its successor Olympic Airlines pay back as much as 540 million euros ($645 million) in illegal state aid.
The paper said the new company would be jointly owned by the government and private investors but the exact stake the government will hold has yet to be finalised.
Greek Transport Minister Michael Liapis said last month the EU Commission's ruling hindered Olympic's privatisation but while the government would spare no effort to sell it, it would also look into alternative solutions for the day after.
© Reuters 2005. All Rights Reserved.
Join Date: Jan 2002
Location: Greece
Posts: 34
Likes: 0
Received 0 Likes
on
0 Posts
November 15, 2005
Greece will relaunch its ailing Olympic Airlines for a second time in two years following the failure of its latest attempt to privatize the company, a senior government official said on Tuesday.
After repeatedly failing to find buyers for the loss-making airline, the official said the state along with private investors and banks would be the new carrier's shareholders.
"The government plans to table legislation in the coming days to set up a new company," said the official after a cabinet meeting on the future of the airline, chaired by Prime Minister Costas Karamanlis.
Analysts said the government, keen to avoid the political cost of closing down the company and 1,800 layoffs, will try to keep the carrier alive in a slimmed down version, with reduced staff and costs.
Athens has scrambled to find a solution for Olympic after a European Commission ruling in September requiring the airline to pay back to the government around EUR540 million (USD$632.8 million) in state aid.
The EU executive, which found that previous cash handouts to Olympic were distorting competition, had given Athens two months to come up with measures to comply with its ruling.
"Everything is different for Olympic Airways after the EU decision in September," Transport Minister Michael Liapis told reporters after the cabinet meeting. He did not elaborate.
But the cabinet's decision to relaunch the airline, founded by shipping tycoon Aristotle Onassis in 1957, confirmed fears that the latest tender had once again proved fruitless.
"The government is trying with the least possible political cost to keep the carrier alive, but this is not a solution," said analyst Vasilis Vlastarakis at Beta Securities. "Only a private air transport company can operate such an airline."
Analysts have said that Greece will try to follow the model of Belgium's Sabena, which was forced to shut down by the EU and was re-opened as a private company with a small state participation.
The latest tender appeared to have collapsed when negotiations with bidder Olympic Investors-York Capital, a US investment fund, fizzled out.
(Reuters)
Greece will relaunch its ailing Olympic Airlines for a second time in two years following the failure of its latest attempt to privatize the company, a senior government official said on Tuesday.
After repeatedly failing to find buyers for the loss-making airline, the official said the state along with private investors and banks would be the new carrier's shareholders.
"The government plans to table legislation in the coming days to set up a new company," said the official after a cabinet meeting on the future of the airline, chaired by Prime Minister Costas Karamanlis.
Analysts said the government, keen to avoid the political cost of closing down the company and 1,800 layoffs, will try to keep the carrier alive in a slimmed down version, with reduced staff and costs.
Athens has scrambled to find a solution for Olympic after a European Commission ruling in September requiring the airline to pay back to the government around EUR540 million (USD$632.8 million) in state aid.
The EU executive, which found that previous cash handouts to Olympic were distorting competition, had given Athens two months to come up with measures to comply with its ruling.
"Everything is different for Olympic Airways after the EU decision in September," Transport Minister Michael Liapis told reporters after the cabinet meeting. He did not elaborate.
But the cabinet's decision to relaunch the airline, founded by shipping tycoon Aristotle Onassis in 1957, confirmed fears that the latest tender had once again proved fruitless.
"The government is trying with the least possible political cost to keep the carrier alive, but this is not a solution," said analyst Vasilis Vlastarakis at Beta Securities. "Only a private air transport company can operate such an airline."
Analysts have said that Greece will try to follow the model of Belgium's Sabena, which was forced to shut down by the EU and was re-opened as a private company with a small state participation.
The latest tender appeared to have collapsed when negotiations with bidder Olympic Investors-York Capital, a US investment fund, fizzled out.
(Reuters)
Join Date: Aug 1999
Location: Dublin, Ireland
Posts: 1,879
Likes: 0
Received 0 Likes
on
0 Posts
Do they intend to keep all of the A340s in service? Is there enough flying for four A340s?
Looking at the Winter timetable, the schedule seems to be (for the A340 fleet):
- 6 weekly to LHR
3 weekly to JNB
3 weekly to YUL
5 weekly to JFK ... a total of 17. With four aircraft?
Surely that's the first place to start cutting back; three would probably do the job, or even two if they used an A300 for the LHR flight?
Looking at the Winter timetable, the schedule seems to be (for the A340 fleet):
- 6 weekly to LHR
3 weekly to JNB
3 weekly to YUL
5 weekly to JFK ... a total of 17. With four aircraft?
Surely that's the first place to start cutting back; three would probably do the job, or even two if they used an A300 for the LHR flight?
Ecce Homo! Loquitur...
Kathimerini: Gov’t to relaunch airline after latest privatization attempt fails
A new air carrier will be carved out of Olympic Airlines (OA) with the help of private investors, the government said yesterday, after the fifth attempt to privatize the troubled company failed.
Finance Minister Giorgos Alogoskoufis and Transport Minister Michalis Liapis said that a new airline will be formed out of OA and that the state will hand over ownership and control to private investors. “We will submit in the next few days a legislative amendment that will set up a new airline to operate under private financial criteria,” Liapis said after a joint ministerial meeting.
The fifth attempt to sell state-owned OA since 1999 took a hit recently when the European Commission ordered the airline to pay back more than 500 million euros in illegal state aid it had received. An American consortium comprising Olympic Investors and its US partner had already been chosen as the preferred bidder in the privatization process. But the EU decision made sale talks a lot more difficult, Liapis said.
“We have also instructed a top international consultant to draw up a business plan, for which the new company will receive the necessary permits,” the minister added. The new airline is likely to start operating in April with 30 planes — 10 fewer than it currently has.
The decision is seen as a compromise for the government, which had indicated that it was ready to shut down the airline as part of its structural reforms. However, a slimmer version of OA with fewer employees and lower costs will now keep the airline flying and help the ruling conservatives minimize any political backlash.
Liapis is expected to meet with OA employees tomorrow to discuss their future. The Federation of Civil Aviation Unions (OSPA) welcomed the news yesterday but said it was cautious about whether the state will use this development as another opportunity to scale the air carrier down further.
A new air carrier will be carved out of Olympic Airlines (OA) with the help of private investors, the government said yesterday, after the fifth attempt to privatize the troubled company failed.
Finance Minister Giorgos Alogoskoufis and Transport Minister Michalis Liapis said that a new airline will be formed out of OA and that the state will hand over ownership and control to private investors. “We will submit in the next few days a legislative amendment that will set up a new airline to operate under private financial criteria,” Liapis said after a joint ministerial meeting.
The fifth attempt to sell state-owned OA since 1999 took a hit recently when the European Commission ordered the airline to pay back more than 500 million euros in illegal state aid it had received. An American consortium comprising Olympic Investors and its US partner had already been chosen as the preferred bidder in the privatization process. But the EU decision made sale talks a lot more difficult, Liapis said.
“We have also instructed a top international consultant to draw up a business plan, for which the new company will receive the necessary permits,” the minister added. The new airline is likely to start operating in April with 30 planes — 10 fewer than it currently has.
The decision is seen as a compromise for the government, which had indicated that it was ready to shut down the airline as part of its structural reforms. However, a slimmer version of OA with fewer employees and lower costs will now keep the airline flying and help the ruling conservatives minimize any political backlash.
Liapis is expected to meet with OA employees tomorrow to discuss their future. The Federation of Civil Aviation Unions (OSPA) welcomed the news yesterday but said it was cautious about whether the state will use this development as another opportunity to scale the air carrier down further.
Join Date: Jan 2002
Location: Greece
Posts: 34
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Aug 2005
Location: tinos greece
Posts: 290
Likes: 0
Received 0 Likes
on
0 Posts
Here is an excerpt from Kathimerini yesterday:
“We have also instructed a top international consultant to draw up a business plan, for which the new company will receive the necessary permits,” the minister added. The new airline is likely to start operating in April with 30 planes — 10 fewer than it currently has.'
Surely they have more aircraft than this, especially when you include all of the domestic service (lots of ATRs). Does anyone know the real total?
Also, another article mentions a staff reduction of 50%. I am guessing that there will be massive strikes in opposition to this. Would love to know on what basis the 'new' company decides who will stay and who will go. Would be very nice if merit and ability were included in the criteria.
The full article can be found here: http://www.ekathimerini.com/4dcgi/_w.../11/2005_63073
“We have also instructed a top international consultant to draw up a business plan, for which the new company will receive the necessary permits,” the minister added. The new airline is likely to start operating in April with 30 planes — 10 fewer than it currently has.'
Surely they have more aircraft than this, especially when you include all of the domestic service (lots of ATRs). Does anyone know the real total?
Also, another article mentions a staff reduction of 50%. I am guessing that there will be massive strikes in opposition to this. Would love to know on what basis the 'new' company decides who will stay and who will go. Would be very nice if merit and ability were included in the criteria.
The full article can be found here: http://www.ekathimerini.com/4dcgi/_w.../11/2005_63073
Join Date: Feb 2003
Location: Mt. Olympus
Age: 59
Posts: 80
Likes: 0
Received 0 Likes
on
0 Posts
Also, another article mentions a staff reduction of 50%. I am guessing that there will be massive strikes in opposition to this. Would love to know on what basis the 'new' company decides who will stay and who will go. Would be very nice if merit and ability were included in the criteria.
TR
-------------------------
ThinkRate! ThinkRate! Don't Think!