Axon Airlines stopped operations
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Axon Airlines stopped operations
" Yesterday's announcement by Axon Airlines that it will end its operation caused a sensation. Axon is the first Greek airline to become a victim of the international air transportation crisis. The company management stressed in its statement yesterday that after the September 11 terrorist attack on the United States, its economic damage widens in an impressive pace and a recovery is not expected in the near future.
The Axon Airlines stock had big losses in the Athens Stock Exchange last week dropping by -12.8%.
Axon Airlines employed 300 people and had 7 airplanes, 4 of which were leased. No decision was made yet on whether the 3 company owned airplanes will be sold.
The September 11 events and their consequences completely changed the Axon Holding strategy which of course is not interested anymore in purchasing the state-run Olympic Airways, which is going to be privatized soon. "
Interesting indeed. They were considered the front runner for the buyout of Olympic.
So God knows where this development takes that issue.
Something isn't right here though. Didn't Credit Suisse (who's handling the Olympic bids) do enough homework on these guys.
If they were on such thin financial ice that 9/11 just wiped them out, how could they have had a serious bid for Olympic?
The Axon Airlines stock had big losses in the Athens Stock Exchange last week dropping by -12.8%.
Axon Airlines employed 300 people and had 7 airplanes, 4 of which were leased. No decision was made yet on whether the 3 company owned airplanes will be sold.
The September 11 events and their consequences completely changed the Axon Holding strategy which of course is not interested anymore in purchasing the state-run Olympic Airways, which is going to be privatized soon. "
Interesting indeed. They were considered the front runner for the buyout of Olympic.
So God knows where this development takes that issue.
Something isn't right here though. Didn't Credit Suisse (who's handling the Olympic bids) do enough homework on these guys.
If they were on such thin financial ice that 9/11 just wiped them out, how could they have had a serious bid for Olympic?
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You know, for the life of me ....It may be relavent for many transatlantic operators the Sept.11 catastrophe,but for Axon I don't but it,as a reason for their demise.
Yeah sure its rough for the people out of work now....but what do you expect from a guy whos only reason for starting the operation in the first place, was to have something to show to greek authorities..."hey I'm in the airline gig"... the guy is an arms dealer..
The deal to buy Olympic crashed...time to shut down operations...its commonly known that the company was suffering heavy losses the last year and a half{give or take).
It would be nice to see investors with real vision for the future instead of fly by night thugs...
Yeah sure its rough for the people out of work now....but what do you expect from a guy whos only reason for starting the operation in the first place, was to have something to show to greek authorities..."hey I'm in the airline gig"... the guy is an arms dealer..
The deal to buy Olympic crashed...time to shut down operations...its commonly known that the company was suffering heavy losses the last year and a half{give or take).
It would be nice to see investors with real vision for the future instead of fly by night thugs...
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Well, 9/11 is being blamed for every bad management move in post-WWII era. It's reaching the stupid point, I agree.
This was quite the embarassement for the gov't since they were ready to award Olympic to them. Phewww, the Olympic boys dodged a big one there. They may try the Australian bidder next or just shut down the airline for 48 hours ala Swissair and try it again.
I can't see how but it should be interesting because I understand Olympic is losing about 800 million drachmas a day (~ $2.1 million US).
This was quite the embarassement for the gov't since they were ready to award Olympic to them. Phewww, the Olympic boys dodged a big one there. They may try the Australian bidder next or just shut down the airline for 48 hours ala Swissair and try it again.
I can't see how but it should be interesting because I understand Olympic is losing about 800 million drachmas a day (~ $2.1 million US).
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Every man and his dog thought that Liakounakos...= Axon, was going to get the bid because from obscurity to riches with the help of the ruling party he was the front runner...some gossip of ministers getting some dosh under the table etc....the government saw too much scandle behind the wholedeal with Axon ...maybe
The losses for Olmypic are very heavy but I dought its as you quote...none the less, its got to be the aussies or shutdown city for OA. I hope not!
The losses for Olmypic are very heavy but I dought its as you quote...none the less, its got to be the aussies or shutdown city for OA. I hope not!
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Neither. I'm stateside but I am Greek so I do like to follow what goes on in terms of aviation.
To tell you the truth, I'd hate to see Greece possibly lose its flag carrier but those guys just can't turn a profit. If it can happen to SR it could certainly happen to OA.
To tell you the truth, I'd hate to see Greece possibly lose its flag carrier but those guys just can't turn a profit. If it can happen to SR it could certainly happen to OA.
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Well Guys....I am not wholly convinced that the whole Axxon thing is Kosher. They have not gone bankrupt, but have only ceased operations.
Could it be that Axxon are trying to get the Government to put up a few readies in support of their bid to buy out Olympic.??
I was in Athens earlier this week, and the general opinion seems to be that they haven't gone out of business, but only ceased Ops. I talked to the Axxon guys as well, and the whole thing was a complete shock to them. Watch this space.
Lord knows, with Virgin ceasing ATH Ops, Cronus/Aegean in deep trouble, SN going out of business and SR decidely dodgy, along with OA lurching on in a horribly unstable fashion, the new Athens airport is running badly short of cash.
Could it be that Axxon are trying to get the Government to put up a few readies in support of their bid to buy out Olympic.??
I was in Athens earlier this week, and the general opinion seems to be that they haven't gone out of business, but only ceased Ops. I talked to the Axxon guys as well, and the whole thing was a complete shock to them. Watch this space.
Lord knows, with Virgin ceasing ATH Ops, Cronus/Aegean in deep trouble, SN going out of business and SR decidely dodgy, along with OA lurching on in a horribly unstable fashion, the new Athens airport is running badly short of cash.
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This is the latest on the issue of OA's sale:
"December 23 deadline for Olympic
Transport minister says IAS will be required to come up with a 100-million-euro financial commitment
By Foo Yun Chee
Kathimerini English Edition
Ongoing negotiations with International Airline Solutions (IAS) on the sale of a majority stake in Olympic Airways are set to end on December 23, Transport and Communications Minister Christos Verelis said yesterday as he stressed that the privatization process will not be further extended.
The minister told Flash radio station that the government will come up with a final decision regarding Olympic Airways following the end of talks with IAS on December 23. The Australian consortium, backed by Olympic pilots and a number of leading businessmen, became the sole bidder for the national airline following the closure of preferred bidder Axon Airlines last week.
Verelis said that IAS will be required to come up with a 100-million-euro financial commitment, something that Axon Airlines could not do, leading to the termination of its discussions with privatization adviser Credit Suisse First Boston on November 15.
"IAS will need to deposit the sum into an escrow account before we can proceed with the next stage, which is the submission of a comprehensive and analytical agreement," he said.
Questioned on the possibility of further delays in the sell-off process should negotiations with the Australian consortium fall through, the minister was emphatic that "there cannot be any postponement as we have no leeway for this."
He said Olympic has been hit with a 30-percent drop in passenger traffic following the impact of the attacks in the USA, compounding financial problems aggravated by heavy airport levies.
Verelis said the State is holding talks with airport operator Athens International Airport (AIA) on further levy cuts which will come into effect January 1, 2002. AIA slashed landing and parking rates by 5 to 60 percent in October. Airlines and tour operators, however, countered that the size of the reductions was not sufficient.
"What we are discussing is a reduction of about 10 percent," the minister said, noting that further cuts could come following a rescheduling of 20 to 25 percent of the airport operator's debt payments.
Citing the possibility that Greece could left without a national carrier on the eve of the 2004 Olympic Games, the Association of Greek Tourist Enterprises (SETE) yesterday said the State should take steps to foster demand. One way of doing this is to cut charges at airports countrywide.
Opposition party leader Costas Karamanlis noted that the debacle with Olympic Airways underscored the government's inability to push through structural reforms. "
"December 23 deadline for Olympic
Transport minister says IAS will be required to come up with a 100-million-euro financial commitment
By Foo Yun Chee
Kathimerini English Edition
Ongoing negotiations with International Airline Solutions (IAS) on the sale of a majority stake in Olympic Airways are set to end on December 23, Transport and Communications Minister Christos Verelis said yesterday as he stressed that the privatization process will not be further extended.
The minister told Flash radio station that the government will come up with a final decision regarding Olympic Airways following the end of talks with IAS on December 23. The Australian consortium, backed by Olympic pilots and a number of leading businessmen, became the sole bidder for the national airline following the closure of preferred bidder Axon Airlines last week.
Verelis said that IAS will be required to come up with a 100-million-euro financial commitment, something that Axon Airlines could not do, leading to the termination of its discussions with privatization adviser Credit Suisse First Boston on November 15.
"IAS will need to deposit the sum into an escrow account before we can proceed with the next stage, which is the submission of a comprehensive and analytical agreement," he said.
Questioned on the possibility of further delays in the sell-off process should negotiations with the Australian consortium fall through, the minister was emphatic that "there cannot be any postponement as we have no leeway for this."
He said Olympic has been hit with a 30-percent drop in passenger traffic following the impact of the attacks in the USA, compounding financial problems aggravated by heavy airport levies.
Verelis said the State is holding talks with airport operator Athens International Airport (AIA) on further levy cuts which will come into effect January 1, 2002. AIA slashed landing and parking rates by 5 to 60 percent in October. Airlines and tour operators, however, countered that the size of the reductions was not sufficient.
"What we are discussing is a reduction of about 10 percent," the minister said, noting that further cuts could come following a rescheduling of 20 to 25 percent of the airport operator's debt payments.
Citing the possibility that Greece could left without a national carrier on the eve of the 2004 Olympic Games, the Association of Greek Tourist Enterprises (SETE) yesterday said the State should take steps to foster demand. One way of doing this is to cut charges at airports countrywide.
Opposition party leader Costas Karamanlis noted that the debacle with Olympic Airways underscored the government's inability to push through structural reforms. "
