Olympic Airlines/Air
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Olympic Airlines/Air
"Greece said yesterday it would try to inject 100 million to 150 million euros ($87m-131m) of private funds into Olympic Airways and shed about 2,000 jobs in a last-ditch effort to keep the airline aloft.. .The restructuring plan, put in place after a high-profile privatisation effort flopped last week, hopes to prevent Olympic becoming the third large European airline to collapse in six months.
A ministry outline of the plan made clear this was Olympic's last chance to survive in a difficult international market, particularly with the European Union increasingly strict about funding rules.
"It is clear this last effort must succeed for Olympic to keep flying. There is no margin for failure in this attempt," a ministry statement said.
The plan includes splitting up the debt-ridden airline and pumping money into a new company handling flight activities, which will remain 49 per cent owned by the state.
Under the plan, new management would improve the flight network, run full planes and cut jobs to make the airline leaner, more profitable and more attractive for a future buyer.
The rest of its activities will be sold off separately. Some will be put on the block immediately, but others will be given two years to improve before being offered to the market.
"We believe that there must be a viable, major national air carrier which will serve the needs of Greece, Europe and the region," Finance Minister Nikos Christodoulakis said after a cabinet meeting that unanimously approved the scheme.
The European Union, which has seen other Brussels-sanctioned restructuring plans for Olympic fail in the past, must approve the re-shape, which will leave Olympic's ballooning debts behind it."
A ministry outline of the plan made clear this was Olympic's last chance to survive in a difficult international market, particularly with the European Union increasingly strict about funding rules.
"It is clear this last effort must succeed for Olympic to keep flying. There is no margin for failure in this attempt," a ministry statement said.
The plan includes splitting up the debt-ridden airline and pumping money into a new company handling flight activities, which will remain 49 per cent owned by the state.
Under the plan, new management would improve the flight network, run full planes and cut jobs to make the airline leaner, more profitable and more attractive for a future buyer.
The rest of its activities will be sold off separately. Some will be put on the block immediately, but others will be given two years to improve before being offered to the market.
"We believe that there must be a viable, major national air carrier which will serve the needs of Greece, Europe and the region," Finance Minister Nikos Christodoulakis said after a cabinet meeting that unanimously approved the scheme.
The European Union, which has seen other Brussels-sanctioned restructuring plans for Olympic fail in the past, must approve the re-shape, which will leave Olympic's ballooning debts behind it."
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Olympic gets 6 suitors
From Dow Jones News Service(2/12):
"Six bidders expressed interest in a majority stake in Greece's ailing air carrier, Olympic Airways , transport ministry officials confirmed Monday. The bidders include a group called Olympic Investors; private Greek air carrier Aegean Airlines; the consortium New Wings, led by Greek businessman Pavlos Vardinoyiannis; Golden Aviation, led by ship owner Spiros Restis; Chrysler Aviation; and U.S.-based Wexford fund. Their bids are non-binding.
Also, an Australian-based fund, Integrated Airlines Solutions, requested an extension of its deadline, which had expired Friday, to submit a bid. Olympic Airways has been for sale over the last two years, in successive failed attempts to privatize up to a 65% stake in the cash-strapped airline. Restis and Integrated Airlines Solutions had previously submitted offers.
Officials said Monday that a group of Olympic Airways pilots received reassurance from Transport Minister Christos Verelis that there will be no layoffs when the company is sold. They also expressed their concern that the company's possible sale to Aegean Airlines would hurt competition.
"There will be talks with the interested parties in the coming days before a finalization of the non-binding list," the officials said"
"Six bidders expressed interest in a majority stake in Greece's ailing air carrier, Olympic Airways , transport ministry officials confirmed Monday. The bidders include a group called Olympic Investors; private Greek air carrier Aegean Airlines; the consortium New Wings, led by Greek businessman Pavlos Vardinoyiannis; Golden Aviation, led by ship owner Spiros Restis; Chrysler Aviation; and U.S.-based Wexford fund. Their bids are non-binding.
Also, an Australian-based fund, Integrated Airlines Solutions, requested an extension of its deadline, which had expired Friday, to submit a bid. Olympic Airways has been for sale over the last two years, in successive failed attempts to privatize up to a 65% stake in the cash-strapped airline. Restis and Integrated Airlines Solutions had previously submitted offers.
Officials said Monday that a group of Olympic Airways pilots received reassurance from Transport Minister Christos Verelis that there will be no layoffs when the company is sold. They also expressed their concern that the company's possible sale to Aegean Airlines would hurt competition.
"There will be talks with the interested parties in the coming days before a finalization of the non-binding list," the officials said"
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Olympic Airways subsidy was illegal, rules EU
From the BBC(11/12):
"The European Commission has ruled that Olympic Airways, the Greek flag carrier, must pay back state aid worth 194m euros (£124.4m; $195.6m). The payouts to Olympic, which has been struggling financially, broke EU rules, said EU Transport Commissioner Loyola de Palacio.
EU rules set tight controls over state support for the airline industry.
Ms de Palacio said the Commission believed it was "guaranteeing to everyone on the European market that they can benefit from equal conditions...we are avoiding cheating".
The Greek government has already said it will appeal against the ruling. It is planning to privatise the state-run airline, which aviation analysts viewed as one of the most financially vulnerable national carriers, even before the attacks on the World Trade Centre sent the travel industry into crisis. The Commission has objected to package of payouts to Olympic combined with payment holidays on airport taxes and social security payments."
"The European Commission has ruled that Olympic Airways, the Greek flag carrier, must pay back state aid worth 194m euros (£124.4m; $195.6m). The payouts to Olympic, which has been struggling financially, broke EU rules, said EU Transport Commissioner Loyola de Palacio.
EU rules set tight controls over state support for the airline industry.
Ms de Palacio said the Commission believed it was "guaranteeing to everyone on the European market that they can benefit from equal conditions...we are avoiding cheating".
The Greek government has already said it will appeal against the ruling. It is planning to privatise the state-run airline, which aviation analysts viewed as one of the most financially vulnerable national carriers, even before the attacks on the World Trade Centre sent the travel industry into crisis. The Commission has objected to package of payouts to Olympic combined with payment holidays on airport taxes and social security payments."
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Olympic Airlines Privatization
Today was the last day, for the beaters, to set their offers at "LAZARD's" for OLYMPIC AIRLINES bonds.
Four beats where recorded.
1. OLYMPIC INVESTORS group, from USA
2. SURE ESTATES from the Netherlands
3. AEGEAN airlines from Greece
4. The owner of DBA (Germany).
From the above beats, the 1st and 2nd are very intresting offers, as mentioned by Lazard's excecutives.
AEGEAN's is mentioned as "well behind the other two", and the fourth is mentioned, as of "not intresting at all".
As said from EXPA (Greek pilot union), the offer of AEGEAN is of "no importance", and it is strange, how a local airline with deficite of approx. $ 60 millions, is offering money, to buy his opponent! EXPA spokesman, said earlier this morning, that there will be a news statement tomorrow, against AEGEAN with grate importance.
Four beats where recorded.
1. OLYMPIC INVESTORS group, from USA
2. SURE ESTATES from the Netherlands
3. AEGEAN airlines from Greece
4. The owner of DBA (Germany).
From the above beats, the 1st and 2nd are very intresting offers, as mentioned by Lazard's excecutives.
AEGEAN's is mentioned as "well behind the other two", and the fourth is mentioned, as of "not intresting at all".
As said from EXPA (Greek pilot union), the offer of AEGEAN is of "no importance", and it is strange, how a local airline with deficite of approx. $ 60 millions, is offering money, to buy his opponent! EXPA spokesman, said earlier this morning, that there will be a news statement tomorrow, against AEGEAN with grate importance.
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OXOGEKAS
What are you going on about? I guess you mean bidders not beaters.
Also latest data I see for Aegean shows they had a positive operating result last year.
They won Best European Regional Airline Award last year, have just signed a codeshare pact with Lufthansa etc etc.
They may not win the battle for Olympic, but I don't know what your problem with them is.
ps
I'm not Greek.
What are you going on about? I guess you mean bidders not beaters.
Also latest data I see for Aegean shows they had a positive operating result last year.
They won Best European Regional Airline Award last year, have just signed a codeshare pact with Lufthansa etc etc.
They may not win the battle for Olympic, but I don't know what your problem with them is.
ps
I'm not Greek.
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I apologise for my english......Bidder is the right word.
According to latest news from LAZARD, talks with OLYMPIC INVESTORS will start , followed with talks with SURE ESTATES.
First bidder was 230mil$, second 115, third 55, and fourth 10.
Aegean bid was for approx. 55 mil$, and DBA for 10.
As far as I know, AEGEAN has "accumulated losses" of approx 60-70 mil$. They had this year a positive result, wich reduced the accumulated losses.
Of course, a privatly owned airline, has a better management.OA, as government owned company, obviously does'nt.
What is all this "story" of "codesharing"?
OA, has codesharing with most of the airlines....not only one!
Big deal!
And this is normal .....OA is nearly 48 years old, and the other 6 or 7!
According to latest news from LAZARD, talks with OLYMPIC INVESTORS will start , followed with talks with SURE ESTATES.
First bidder was 230mil$, second 115, third 55, and fourth 10.
Aegean bid was for approx. 55 mil$, and DBA for 10.
As far as I know, AEGEAN has "accumulated losses" of approx 60-70 mil$. They had this year a positive result, wich reduced the accumulated losses.
Of course, a privatly owned airline, has a better management.OA, as government owned company, obviously does'nt.
What is all this "story" of "codesharing"?
OA, has codesharing with most of the airlines....not only one!
Big deal!
And this is normal .....OA is nearly 48 years old, and the other 6 or 7!
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Think you'll find that Antonis and Nikalaos Simigdales set up Aegean in 1987 (although they had been operating ad-hoc flights and trying to set up a scheduled airline for years in the face of opposition by OA and the Greek government - mind you weren't they one and the same?).
The codeshare bit was to show that other renowned airlines are happy to do business with Aegean - so they can't be that bad?
Anyway if you want to read more on Aegean see here:
http://www.aegeanair.com/aegeangr/home/
http://www.aegeanair.com/aegeangr/co...ilestones.html
It's all Greek to me!
The codeshare bit was to show that other renowned airlines are happy to do business with Aegean - so they can't be that bad?
Anyway if you want to read more on Aegean see here:
http://www.aegeanair.com/aegeangr/home/
http://www.aegeanair.com/aegeangr/co...ilestones.html
It's all Greek to me!
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pa31T, you are not so good informed. Till few years ago, there was no other AOC in Greece, except this of former OLYMPIC AIRWAYS.
AEGEAN, was operating a LEAR, (still in operation), a few years ago, approx late 90's.
Aegean, was formed, from the joining of Air Greece, Cronus, an Aegean.
brabazon, they were flying PIPER CUB, with banners, during summer, over Greek coasts!!! If this is an airline operation, then,,,,,!!!
AEGEAN, was operating a LEAR, (still in operation), a few years ago, approx late 90's.
Aegean, was formed, from the joining of Air Greece, Cronus, an Aegean.
brabazon, they were flying PIPER CUB, with banners, during summer, over Greek coasts!!! If this is an airline operation, then,,,,,!!!
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OXOGEKAS
BBC reported that there were 5 bidders for OA:
http://news.bbc.co.uk/1/hi/business/4444137.stm
Also I still think your history of Aegean is not correct.
BBC reported that there were 5 bidders for OA:
http://news.bbc.co.uk/1/hi/business/4444137.stm
Also I still think your history of Aegean is not correct.
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yOU ARE RIGHT! I gave so much attention to AEGEAN ....
If and when, OA, gets a new boss, everything will change in Greece. According to the "story" of AEGEAN, you believe it or not, this is the story.....! Ask the persons you mentioned!
The "fifth" is already OUT!! (as DBA, and AEGEAN), whose bids are out of question.....(They want to buy OA......with VISA CREDIT CARD)
If and when, OA, gets a new boss, everything will change in Greece. According to the "story" of AEGEAN, you believe it or not, this is the story.....! Ask the persons you mentioned!
The "fifth" is already OUT!! (as DBA, and AEGEAN), whose bids are out of question.....(They want to buy OA......with VISA CREDIT CARD)
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Olympic sale agreement - Bloomberg
Full Text
(snippet)
Aug. 6 (Bloomberg) -- Greece reached a preliminary agreement to sell Olympic Airlines SA, the country's unprofitable national carrier, to York Capital/Olympic Investors, said the Economy and Finance Ministry yesterday in an e-mailed statement.
On the recommendation of Olympic Air's sale advisers, a ministerial committee on state asset sales ``approved a memorandum of basic positions between the Greek state and the York Capital/Olympic Investors group,'' said the statement.
The memorandum's signature ``opens the way'' for the company's sale, which ``continues to depend on European Union decisions,'' the statement said, without giving further details.
(snippet)
Aug. 6 (Bloomberg) -- Greece reached a preliminary agreement to sell Olympic Airlines SA, the country's unprofitable national carrier, to York Capital/Olympic Investors, said the Economy and Finance Ministry yesterday in an e-mailed statement.
On the recommendation of Olympic Air's sale advisers, a ministerial committee on state asset sales ``approved a memorandum of basic positions between the Greek state and the York Capital/Olympic Investors group,'' said the statement.
The memorandum's signature ``opens the way'' for the company's sale, which ``continues to depend on European Union decisions,'' the statement said, without giving further details.
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Poor buggers...
If they want to part with their money so desperately they can PM me and I will happily give them my bank details! Not as good for their ego as buying an (F)ailing airline but hey: at least one person would be happy
If they want to part with their money so desperately they can PM me and I will happily give them my bank details! Not as good for their ego as buying an (F)ailing airline but hey: at least one person would be happy
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Last days of Olympic?
During the last days the greek media are openly reporting about the possibility, that Olympic might be closed down.
The reason is, that they are expecting an announcement from the European commission on the 14th of this month, demanding Olympic to return a huge sum to the greek state, that is considered to have been illegal subsidies.
Since Olympic does not have that kind of cash handy, 3 scenarios are being discussed:
1) Olympic ceases ops. Employees are transfered to other jobs in the public sector, or given voluntary departure schemes.
All assets are sold.
2) Olympic shuts down, and a new company will be taking over, with less employees working at different terms and conditions.
3) Greece ignores the ruling and awaits a court decision, which would buy them about 2 years, until a final decision is announced by the european court.
Obviously difficult times ahead for the employees in Olympic. Hope they will be able to get on with their careers.
The reason is, that they are expecting an announcement from the European commission on the 14th of this month, demanding Olympic to return a huge sum to the greek state, that is considered to have been illegal subsidies.
Since Olympic does not have that kind of cash handy, 3 scenarios are being discussed:
1) Olympic ceases ops. Employees are transfered to other jobs in the public sector, or given voluntary departure schemes.
All assets are sold.
2) Olympic shuts down, and a new company will be taking over, with less employees working at different terms and conditions.
3) Greece ignores the ruling and awaits a court decision, which would buy them about 2 years, until a final decision is announced by the european court.
Obviously difficult times ahead for the employees in Olympic. Hope they will be able to get on with their careers.
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Oddly enough, there is an aircarrier just waiting in the wings, to pick up the pieces, one way or the other.
Can't say whom just at the moment, but should Olympic shut down, it will all come to light.
Interesting times, indeed.
Can't say whom just at the moment, but should Olympic shut down, it will all come to light.
Interesting times, indeed.
Paxing All Over The World
(from a simple observer's perspective, with no inside knowledge) The restructing of the European airline industry has a loooong way to go. Sabena and Swiss were only the cocktails!
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According to today´s newspaper "To Vima" the government will not consider option 3 (challenging the decision at court to delay the outcome)
They think it is more likely that Olympic shuts down and the assets will be sold.
The brand "Olympic" is also for sale.
The government would like the name to live on, used by a new operator, to soften the consequences and the political cost for the government.
One of the main reasons why Olympic is still around is "political cost". All the governments so far have chickened out to take unpopular decisions.
They think it is more likely that Olympic shuts down and the assets will be sold.
The brand "Olympic" is also for sale.
The government would like the name to live on, used by a new operator, to soften the consequences and the political cost for the government.
One of the main reasons why Olympic is still around is "political cost". All the governments so far have chickened out to take unpopular decisions.
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I can't believe that the pride of the Greeks (people and government) would allow that to happen, unless the name would absolutely continue in operation. The domestic routes have a fair amount of competition from Aegean, and they all must make a pile of money during the summer. You can't find a seat on a Mykonos or Santorini flight!
Maybe they could improve their financial position overall by getting into the charter business and by bringing back the smoking section. Awfully difficult for some to face a long flight without a cigarette. Would/could be a real selling feature.
Maybe they could improve their financial position overall by getting into the charter business and by bringing back the smoking section. Awfully difficult for some to face a long flight without a cigarette. Would/could be a real selling feature.