Olympic Airlines/Air
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I can't see what's in it for Aegean either.
Why take on all Olympic's problems and all the regulatory hassles when you can watch them slowly perish and occupy the space they were in anyway.
I know they were refounded a few months back, but to all impressions, that's just solved the accounting problems, not all the managerial ones which will threaten their long-term viability again.
Why take on all Olympic's problems and all the regulatory hassles when you can watch them slowly perish and occupy the space they were in anyway.
I know they were refounded a few months back, but to all impressions, that's just solved the accounting problems, not all the managerial ones which will threaten their long-term viability again.
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I can't see what's in it for Aegean either.
Why take on all Olympic's problems and all the regulatory hassles when you can watch them slowly perish and occupy the space they were in anyway.
I know they were refounded a few months back, but to all impressions, that's just solved the accounting problems, not all the managerial ones which will threaten their long-term viability again.
Why take on all Olympic's problems and all the regulatory hassles when you can watch them slowly perish and occupy the space they were in anyway.
I know they were refounded a few months back, but to all impressions, that's just solved the accounting problems, not all the managerial ones which will threaten their long-term viability again.
Does anyone know how these airlines are performing when it comes to revenue at the moment?
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Just a idea but if A3 are looking to merge or work closer with another airline couldn't they link up with TK in neighbouring Turkey.
At present TK is part of * Alliance which Aegean will join in May.
TK currently operate a ever expanding worldwide network. Where A3 mostly operates to European destinations west of Greece. Both currently compete on the IST to ATH route. With TK operating 3 daily flight and Aegean a daily service.
Say TK bought a fairly large stake in A3. This could allow TK in the beginning to use A3 as a feeder airline for it's expanding longhaul network ex IST. TK could come to a agreement with A3 whereby A3 took over the operation of all the IST/ATH flights and TK would codeshare on them. Also TK could codeshare on A3's domestic flights to and from ATH.
In return the A3 code could be added to TK's services to the Middle East, North America and Asia as well as those European cities where A3 currently don't operate to. With tickets available for sale through both airlines.
By doing things this way both airlines could keep there seperate identity while at the same time generate more revenues and increasing market share.
At present TK is part of * Alliance which Aegean will join in May.
TK currently operate a ever expanding worldwide network. Where A3 mostly operates to European destinations west of Greece. Both currently compete on the IST to ATH route. With TK operating 3 daily flight and Aegean a daily service.
Say TK bought a fairly large stake in A3. This could allow TK in the beginning to use A3 as a feeder airline for it's expanding longhaul network ex IST. TK could come to a agreement with A3 whereby A3 took over the operation of all the IST/ATH flights and TK would codeshare on them. Also TK could codeshare on A3's domestic flights to and from ATH.
In return the A3 code could be added to TK's services to the Middle East, North America and Asia as well as those European cities where A3 currently don't operate to. With tickets available for sale through both airlines.
By doing things this way both airlines could keep there seperate identity while at the same time generate more revenues and increasing market share.
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Dear BAladdy,
Your idea could be good in an ideal world.
However Greece and Turkey don't see eye to eye. Things are getting better but the tension can rise quite quickly. So I think that a tie up is not possible at the moment.
Someone else mentioned the impossibility ot Aegean merging with Olympic on competition ground.....Can such a small country afford two airlines? I know Ireland has 2 but with a different business models and one is struggling.
Now does Aegean which seems to do ok want to tie up with a lame duck????
Your idea could be good in an ideal world.
However Greece and Turkey don't see eye to eye. Things are getting better but the tension can rise quite quickly. So I think that a tie up is not possible at the moment.
Someone else mentioned the impossibility ot Aegean merging with Olympic on competition ground.....Can such a small country afford two airlines? I know Ireland has 2 but with a different business models and one is struggling.
Now does Aegean which seems to do ok want to tie up with a lame duck????
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Various RUMOURS (Note!) I've heard round the Tabepnas over the last few days.
1.The government wants to have a strong national airline, and will do whatever is necessary at EC competition level to ensure that the merger is allowed.
2.The merger will be announced on Tuesday
3.Aegean will take the lead in the new company.
4. New name not decided.
5. Quite a lot of rationalisation once the merger takes place. Aegean sending back two rjs in a month or two, and holding back on the ATR purchases and the additional 3 second hand 320s which were scheduled for this Summer. Recruitment on hold, and all contract pilots out (Airbus, 737, and RJ) by the end of March. Speculation also on how the airbus fleet will be rejigged. The Olympic 319s are a lot older than the Aegean 320s and 321s which were all purchased new, and Aegean 320s all have the same engines.
1.The government wants to have a strong national airline, and will do whatever is necessary at EC competition level to ensure that the merger is allowed.
2.The merger will be announced on Tuesday
3.Aegean will take the lead in the new company.
4. New name not decided.
5. Quite a lot of rationalisation once the merger takes place. Aegean sending back two rjs in a month or two, and holding back on the ATR purchases and the additional 3 second hand 320s which were scheduled for this Summer. Recruitment on hold, and all contract pilots out (Airbus, 737, and RJ) by the end of March. Speculation also on how the airbus fleet will be rejigged. The Olympic 319s are a lot older than the Aegean 320s and 321s which were all purchased new, and Aegean 320s all have the same engines.
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Here is Olympic Air's latest advert: Advert removed.
To everyone asking why Aegean would want to merge with Olympic, the answer is that Aegean has faced tougher competition (that did not exist with the old OA) and a price war since Olympic was relaunched. Currently, the situation is basically two same sized airlines competing against each other in a weak market that most likely can not support two big airlines.
Regarding the re-launch of Olympic Air, it was more than an accounting trick this time. It was completely privatized (bought by Marfin Investment Group) and relaunched with a new fleet, product, employees, and management. The Greek government has no say in Olympic anymore.
Local media are reporting that the newly merged airline would take on the Olympic name, with Aegean heading the company.
@NightSun,
Most of OA's A320 fleet are new from Toulouse. They were NTU's.
Most of OA's A320 fleet are new from Toulouse. They were NTU's.
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Local press is reporting a merger is about to happen.
The only "suspense" currently is how much of a stake each airline will hold, but it is almost certain that Aegean will be the majority holder. The Olympic name will most likely remain, while it will take a few months until the airlines are merged. (And of course pending approval from the EU) The airlines believe they will not have a problem getting approval since both airlines only reach 33% market share of domestic and international flights combined. Their goal is to create a strong Greek airline and gain market share, which most likely includes the return of long haul flights.
That is it for now.
The only "suspense" currently is how much of a stake each airline will hold, but it is almost certain that Aegean will be the majority holder. The Olympic name will most likely remain, while it will take a few months until the airlines are merged. (And of course pending approval from the EU) The airlines believe they will not have a problem getting approval since both airlines only reach 33% market share of domestic and international flights combined. Their goal is to create a strong Greek airline and gain market share, which most likely includes the return of long haul flights.
That is it for now.
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If both Aegean and Olympic have only 33% of both domestic and international markets I don't think the EU would be able to block the merger. Hopefully the 'rings' will remain as the great icon/logo that it has always been.
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Although it is 33% of the domestic and international market share combined, other media reports say that the domestic share of both airlines combined is as high as 97% currently. That will most likely be an issue, but I am not sure how the EU looks at market share. If they look at it combined as the two airline insiders seem to imply then it wont be a problem. But if they look at domestic and international separately, then there will most likely be a problem.
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Local press is reporting that the deal between Olympic Air and Aegean Airlines has been finalized between the two sides, and will be announced with more details most likely on Monday. The merger has supposedly gotten a preliminary government green light after meetings with both airlines. All that remains is for Greek and EU Competitions Authority to approve it too.
Until the official announcement, I expect more rumors/leaks through the press.
Until the official announcement, I expect more rumors/leaks through the press.
Last edited by FlyATH; 19th Feb 2010 at 06:41.
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I have heard much the same today with the merger/cooperation possibly taking place today (Friday,) With Aegean taking a 75% share in the new airline.
No formal merger or sale of Olympic can take place until the New Olympic has been in operation for a year, which means the end of the Summer season before it is a working reality, although there could be a lot of route cooperation in the meantime
No formal merger or sale of Olympic can take place until the New Olympic has been in operation for a year, which means the end of the Summer season before it is a working reality, although there could be a lot of route cooperation in the meantime
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The press is now reporting that the name of the newly merged airline will most likely be "Olympic Aegean Air" (OA), at least initially. They are also now reporting that Aegean will take a 60% share and MIG a 40% share. The official announcement is planned for this week.
Merger talks were supposedly initiated after air traffic for 2010 were forcasted to be lower, especially in Europe, as well as weak forecasts for Greek air traffic coupled by newly increased competition between the two airlines.
Already some opposing political parties are protesting the merger, stating anti-competition as the reason.
Merger talks were supposedly initiated after air traffic for 2010 were forcasted to be lower, especially in Europe, as well as weak forecasts for Greek air traffic coupled by newly increased competition between the two airlines.
Already some opposing political parties are protesting the merger, stating anti-competition as the reason.
Last edited by FlyATH; 20th Feb 2010 at 19:07.
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International news sites, including Reuters, report that Aegean and Olympic have agreed to merge, and it will be formally announced soon. The name of the newly merge company will carry the Olympic brand they report as well.
UPDATE 2-Greek carriers Aegean, Olympic agree merger-sources | Deals | Private Equity | Reuters
UPDATE 2-Greek carriers Aegean, Olympic agree merger-sources | Deals | Private Equity | Reuters
Last edited by FlyATH; 22nd Feb 2010 at 13:53.
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The airlines have agreed to a merger, and they will keep the Olympic Air brand. The Aegean brand will cease to exist after a transition period.
Regarding the fleet, most of OA's A320 fleet, although mostly new is leased from what I understand. I expect a new order combined Airbus order soon. I have heard rumors that the Avro's will be leaving the Aegean fleet, in favor of OA's Q400's, especially since OA already have Q400's on order.
Local Greek media is saying that the merger should be completed by October if everything goes as planned.
Regarding the fleet, most of OA's A320 fleet, although mostly new is leased from what I understand. I expect a new order combined Airbus order soon. I have heard rumors that the Avro's will be leaving the Aegean fleet, in favor of OA's Q400's, especially since OA already have Q400's on order.
Local Greek media is saying that the merger should be completed by October if everything goes as planned.
Last edited by FlyATH; 23rd Feb 2010 at 00:47.
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Things seem to have panned out pretty much as the rumours from about two weeks ago.
The government wanted the Olympic brand kept, as after setting themselves up for about 600 million euros in old Olympic debt, by taking on all the costs associated with the staff retrenchments, aircraft disposal and other fixed costs, the only thing that was passed on was the name. It would be a bit foolish to have this disappear six months down the line. There was a lot of thought within Aegean that their name should be kept, as the company was much bigger and stronger than the new olympic, and as aegean had been running now for over ten years albeit under various names.
I am sure that there has been no final decision yet on fleet sizing or makeup, this will come in time. (indeed noone knows who the key post holders will be yet.) Certainly it has all come about very quickly. It was only December when Aegean were taking on ex old Olympic pilots for the rjs, and that fleet is now being downsized and those pilots have been let go.
The government wanted the Olympic brand kept, as after setting themselves up for about 600 million euros in old Olympic debt, by taking on all the costs associated with the staff retrenchments, aircraft disposal and other fixed costs, the only thing that was passed on was the name. It would be a bit foolish to have this disappear six months down the line. There was a lot of thought within Aegean that their name should be kept, as the company was much bigger and stronger than the new olympic, and as aegean had been running now for over ten years albeit under various names.
I am sure that there has been no final decision yet on fleet sizing or makeup, this will come in time. (indeed noone knows who the key post holders will be yet.) Certainly it has all come about very quickly. It was only December when Aegean were taking on ex old Olympic pilots for the rjs, and that fleet is now being downsized and those pilots have been let go.
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Olympic cancelling ATH-LHR
I had several flights booked between LHR and ATH over the next couple of months. I have been called by their Greek office and told that they are stopping all flights between Athens and London as from 24th. March.
One suspects they are in big trouble.
It's a shame - they are a nice airline, good service, punctual and efficient.
One suspects they are in big trouble.
It's a shame - they are a nice airline, good service, punctual and efficient.
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Olympic Air to reorganise routes after merger proposal is blocked
The International Herald Tribune (Staff Reporter) writes that Greece's Olympic Air said yesterday that it would cut routes to London, Paris, Vienna and Brussels as part of a reorganisation after the EC decided to block its proposed merger with local rival Aegean Airlines.
The International Herald Tribune (Staff Reporter) writes that Greece's Olympic Air said yesterday that it would cut routes to London, Paris, Vienna and Brussels as part of a reorganisation after the EC decided to block its proposed merger with local rival Aegean Airlines.