Aegean Airways reduces its loss for 2012 to $13.4 million
Aegean Airlines (Athens) reduced its annual net loss for 2012 down to $13.4 million, down from a $34.8 million net loss in 2011.
The airline issued this financial statement:
Aegean reports 2012 revenue of €653.4m, 2% lower compared to 2011. Νet result after tax improved to a loss of €10.5 million compared to a loss of €27.2 million in 2011.
Passengers carried totaled 6.1 million compared to 6.5 million in 2011, with load factor improving from 69% to 74%. The number of passengers carried on domestic routes declined significantly by 12% with average fare falling by more than 10%, declining for the fourth consecutive year. International traffic reached 3.5m passengers with traffic from/to Athens declining by 6% whilst from/to other regional airports increased by 10%.
Despite weak local demand, the company managed to improve its operating result reporting marginally positive EBITDA of €2.9 million, given improved performance in international routes with incoming leisure focus, cost management efforts and also more stable conditions in the country during the second half of the year.
The Company’s cash position stood at €149 million at the end of December 2012.
Mr. Dimitris Gerogiannis, Managing Director, commented:
“Our efforts on improving our efficiency and cost structure are ongoing within an environment of declining domestic demand. In 2012 after a difficult start due to lack of visibility about the course of our country in 1H12, we have managed to limit our losses and defend our revenue relative to 2011. The gradual recovery of incoming leisure traffic as of July, as well as our cost management efforts have contributed to the improvement of our results. We need the economies of scale from the acquisition of Olympic Air, which we can only yield post the pending approval from the European Commission, in order to achieve profitable growth. Our best European regional airline award strengthens our efforts and resolve. We continue to invest in strengthening Greek tourism and increasing our international activity by utilizing the capacity which by necessity is released domestically due to declining demand.”
Aegean Airlines 2012 results
| In € 000 | 2011 | 2012 | % |
| Revenue | 668.218 | 653.388 | -2% |
| EBITDAR* | 61.779 | 73.394 | 19% |
| EBITDA | (17.688) | 2.944 | |
| Profit / (Loss) before tax | (31.153) | (12.618) | -59% |
| Profit / (Loss) after tax | (27.176) | (10.496) | -61% |
*EBITDAR: Earnings before interest, tax, depreciation & amortization and lease costs
| Passengers (million) | 2011 | 2012 | % |
| Domestic | 2,96 | 2,60 | -12% |
| International from/to Athens | 2,2 | 2,1 | -6% |
| International from/to rest of country | 1,3 | 1,4 | +10% |
| International | 3,5 | 3,5 | 0% |
| Total | 6,5 | 6,1 | -6% |
| Load Factor (RPK/ASK) | 68,9% | 74,3% | 5,4pp |
Copyright Photo: Ole Simon. Airbus A321-232 SX-DVP (msn 3527) taxies at Paris (CDG).
Aegean Airlines: 
Aegean Airlines to acquire rival Olympic Air from MIG for €72 million ($93.1 million)
Aegean Airlines (Athens) appears to be finally successful in acquiring rival Olympic Air (3rd) (Athens). Previously on February 22, 2010 the two Greek airlines announced they had agreed to merge. However on January 26, 2011 the European Commission rejected the merger due to anti-competitive concerns.
Now Aegean Airlines and the Marfin Investment Group, the owner of Olympic Air, have agreed to a buy-out by Aegean of Olympic Air for €72 million ($93.1 million). Initially the two airlines will be operated as separate brands and airlines but the deal is still subject to the same anti-competitive concerns of the European Commission.
Both airlines have been losing money, especially with the austerity measures and EU protests in Greece.
Aegean Airlines has issued the following statement:
Aegean Airlines and Marfin Investment Group agreed on October 22, 2012 on the sale of 100% of Olympic Air to Aegean.
Following the completion of the transaction, Olympic Air will become a subsidiary of the listed Aegean. The brand names and logos of the two companies will be maintained and each will have distinct aircraft and flight staff. The unification of administrative, planning, purchasing and commercial functions will lead to substantial economies of scale, in buying power and elimination of duplicate systems. Fleet usage and network planning will be optimized to improve efficiencies and connectivity while improving coverage and product offer.
The deal is subject to approval by the Competition Authorities, a process which will also determine the timing of its execution.
The consideration for 100% of Olympic Air has been set at €72 million with payment in installments to MIG by Aegean. The shareholding structure of Aegean is not affected by the transaction.
Theodoros Vassilakis, Chairman of Aegean Airlines, commented on the deal: “Aegean Airlines and Olympic Air in recent years have invested $2 billion in a brand new fleet. Their service quality has been recognized with the receipt of numerous industry Awards. The two companies contribute in excess of €270 million to the Greek state revenues in airport taxes, fees, social security contributions. However, our subscale size, combined with the effects of the unprecedented Greek crisis, restrict our ability to successfully compete within the European and Global Aviation market leading us to further losses and further reductions of size and scope. As a result we are faced with the immediate danger of Greek Tourism, an industry essential for the country’s recovery, becoming entirely dependent on foreign carriers with permanent losses in local employment and state revenues.
Aegean still possesses the financial reserves to lead the consolidation of aviation in Greece to the benefit of tourism and state revenues as well as our employees and shareholders. The synergies from this agreement will allow us to reduce unit costs and offer enhanced network coverage with competitive prices to the consumers. We hope that all Greeks will support us in this challenging, ambitious and necessary endeavor.”
Companies’ Profiles
Fleet October 2012
| AEGEAN | OLYMPIC AIR | |
| A321 | 4 | |
| A320 | 22 | 5 |
| A319 | 3 | 2 |
| Airbus Α320 Family | 29 | 7 |
| Bombardier Q400 | 0 | 10 |
| Bombardier Dash 8-100 | 0 | 4 |
| Total | 29 | 21 |
Routes (Scheduled network – Summer 2012)
| AEGEAN | OLYMPIC AIR | |
| Domestic | 19 | 38 |
| International | 51 | 7 |
Annual Financial Results FY 2011 (in million €)
| AEGEAN | OLYMPIC AIR | |
| Revenue | 668.2 | 240.5 |
| Net losses after taxes | (27.2) | (37.6) |
Passenger traffic 2012 (estimate in million passengers)
| AEGEAN | OLYMPIC AIR | |
| Domestic | 2.6 | 2.3 |
| International | 3.4 | 0.6 |
| Total | 6.0 | 2.9 |
Top Copyright Photo: Wingnut. Airbus A321-231 SX-DVO (msn 3462) is pictured on the ramp at London (Heathrow).
Aegean Airlines: 
Olympic Air (3rd):
Bottom Copyright Photo: Ole Simon. Flybe’s Bombardier DHC-8-402 (Q400) G-JECV (msn 4148), operated for Olympic Air, arrives at Frankfurt.
Aegean Airlines’ first quarter net loss deepens due to the Greek economic crisis
Aegean Airlines (Athens) reported its first net loss widened to $30.9 million, up from a net loss of $20.2 million in the same period a year ago. The widening loss was blamed on the Greek financial crisis and higher fuel costs.
In other news, Aegean opened the Athens-Prague route on May 24. The new route will be operated three days a week.
Read the full financial report: CLICK HERE
Copyright Photo: Pedro Pics.
Aegean Airlines: 
Aegean Airlines’ net loss grows in 2011
Aegean Airlines (Athens) posted a wider loss in 2011, reporting a net loss of $36.2 million due to rising fuel costs.
Read the full report from Bloomberg: CLICK HERE
Copyright Photo: Andi Hiltl.
Aegean Slide Show: CLICK HERE
Aegean Airlines carries 6.5 million passengers in 2011
Aegean Airlines Airbus A320-232 SX-DGD (msn 4065) (www.visitgreece.gr) TLS (Clement Alloing), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) despite the recent political violence in the country reported its 2011 international network passenger traffic exceeded domestic traffic for the first time in its history. More specifically, international network passengers rose by 15%, reaching 3.52 million out of total 6.5 million passengers carried in 2011.
According to the airline, “The main feature of 2011 performance was the significant increase in activity achieved not only out of Athens Airport – where Aegean traffic also rose despite the decline in total international arrivals in Athens – but mainly out of the country’s regional airports.”
Aegean operated a total of 102 international routes, flying out of six airports in Greece (Athens, Heraklion, Rhodes, Kos, Thessaloniki and Corfu). Markets like UK, Belgium, France, Israel and Russia registered particularly high growth rates according to the company.
As a result of the company’s strategic investment of operating direct international flights from/to regional airports, growth in international passengers reached 37% from/to Rhodes, 23% from/to Heraklion and 10% from/to Thessaloniki, reaching a total of 1.1 million international passengers.
Copyright Photo: Clement Alloing.
Aegean Slide Show: CLICK HERE
Aegean Airlines drops the Athens-Berlin Tegel route
Aegean Airlines Airbus A320-232 SX-DVI (msn 3074) STN (Pedro Pics), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) is planning to drop the Athens-Berlin (Tegel) route on January 8 according to Airline Route.
Copyright Photo: Pedro Pics.
Aegean Slide Show: CLICK HERE
Aegean Airlines loses $3.64 million in the first nine months
Aegean Airlines Airbus A320-232 SX-DGD (msn 4065) (www.visitgreece.gr) TLS (Clement Alloing), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) posted a net loss of $3.64 million for the first nine months of 2011 despite an increase in revenue of 15 percent and total passengers rising by six percent.
Copyright Photo: Clement Alloing.
Aegean Slide Show: CLICK HERE
Aegean Airlines starts to return to a normal schedule, promotes tourism to Greece
Aegean Airlines Airbus A320-232 SX-DGD (msn 4065) (www.visitgreece.gr) TLS (Clement Alloing), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens), following the announcement by the Hellenic Air Traffic controllers that the scheduled ATC strike lasted only 12 hours instead of the planned 48 hours, started reinstating a limited schedule on October 19 and October 20, 2011.
Tourism to Greece has suffered due to the strikes, protests and riots in the streets of Athens due to the recently-voted austerity measures.
Aegean is attempting to promote tourism to Greece by adding “www.visitgreece.gr” titles. The website promotes tourism to Greece.
Aegean Slide Show: CLICK HERE
Copyright Photo: Clement Alloing. Please click on the photo for additional information.
US Airways and Aegean Airlines announce a new codeshare agreement
Aegean Airlines Airbus A321-231 SX-DVO (msn 3462) LHR (Wingnut), originally uploaded by Airliners Gallery.
US Airways (Phoenix) and Aegean Airlines (Athens) have announced a new code share agreement. Customers of both airlines will soon have additional options for travel between Greece and the U.S. The agreement is subject to both U.S. Department of Transportation (DOT) and Greek government approval.
US Airways customers will have access to Athens, the political and cultural capital of Greece, as well as Thessolaniki, Greece, via Aegean Airlines service from London Heathrow, Munich, Germany and Rome. Customers will also have the chance to visit the Greek Islands of Crete, Mykonos, Santorini, Kos, and Rhodes as well as Larnaca, Cyprus, through Aegean Airlines’ hub in Athens.
Aegean Airlines customers will be able to fly nonstop to Philadelphia via US Airways’ seasonal service to Athens. They can also take advantage of numerous connecting opportunities to the airline’s international gateway of Philadelphia and Charlotte, NC, from Paris Charles De Gaulle, Madrid, Spain, Frankfurt, Germany, Rome, London Heathrow, Munich, Germany, and Brussels, Belgium.
Copyright Photo: Wingnut. Please click on the photo for additional information.
Aegean Airlines loses $23 million in the first quarter
Aegean Airlines BAe RJ100 SX-DVE (msn E3374) EFL (Richard Vandervord) (to be retired), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) continues to lose money. The company reported a loss of $23 million in the first quarter.
Copyright Photo: Richard Vandervord.
The EU rejects the Aegean-Olympic merger
Aegean Airlines Airbus A320-232 SX-DVI (msn 3074) STN (Pedro Pics), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) and Olympic Air (3rd) (Athens) have been rejected by the European Union regulator in their merger bid. The regulator called the bid “anti-competitive” for Greece.
Read the full story from Bloomberg Businessweek:
Copyright Photo: Pedro Pics. Please click on the photo for the background information.
Aegean Airlines and Continental Airlines to code share
Aegean Airlines Airbus A320-232 SX-DVI (msn 3074) STN (Pedro Pics), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) and its Star Alliance partner Continental Airlines (Houston) today (August 23) announced plans to start code sharing on Continental’s flights between its New York hub at Newark Liberty International Airport and Athens, as well as on selected flights operated by Aegean Airlines in Europe.
Effective August 23, 2010, Continental will place its “CO” code on selected Aegean Airlines-operated flights between Athens and six leading holiday destinations in Greece (Thessaloniki, Heraklion, Rhodes, Mykonos, Santorini, Chania) and between Athens and Larnaca, Cyprus. At a future date to be determined, Continental will also codeshare on Aegean flights between Athens and London/Heathrow, United Kingdom, and Munich and Frankfurt, Germany. Pending government approval, Continental will also codeshare on Aegean flights between Athens and Paris/Charles de Gaulle, France, and Rome/Fiumicino, Italy.
Also effective August 23, 2010, Aegean Airlines will place its “A3″ code on Continental’s flights between New York/Newark and Athens. Pending government approval, Aegean will also codeshare on Continental flights from New York/Newark to Paris/Charles de Gaulle and to Rome/Fiumicino.
On the financial side, Aegean reported a first half loss of $42 million.
Copyright Photo: Pedro Pics. Airbus A320-232 SX-DVI (msn 3074) of Aegean Airlines is pictured at London (Stansted).
Aegean Airlines joins the Star Alliance
Aegean Airlines Airbus A320-232 SX-DVI (msn 3074) STN (Pedro Pics), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) yesterday (June 30) joined the Star Alliance in a special ceremony at Athens as the 28th member.
Aegean Airlines is the largest Greek carrier, carrying 6.6 million passengers in 2009, an increase of 10% over 2008. After taking delivery of 22 new Airbus A320/321s, the company operates a fleet of 30 aircraft.
Read the press release:
CLICK HERE
Copyright Photo: Pedro Pics. Airbus A320-232 SX-DVI (msn 3074) poses for the camera on the ramp at London (Stansted).
Aegean Airlines swings to a $31.4 million first quarter loss
Aegean Airlines Airbus A320-232 SX-DVI (msn 3074) STN (Pedro Pics), originally uploaded by Airliners Gallery.
Aegean Airlines (Athens) reported a net loss of $31.4 million in the first quarter.
Press release:
Copyright Photo: Pedro Pics. Aegean’s Airbus A320-232 SX-DVI (msn 3074) visits Stansted Airport near London.
Olympic Air (3rd) and Aegean Airlines agree to merge
Please click on the AG icon for a direct link to the Aegean photo gallery.
Aegean Airlines (Athens) and recently privatized Olympic Air (3rd) (Athens) agreed to merge to form a stronger airline better able to compete against foreign airlines. The Olympic name and logo will be retained for the new entity after a transition period where both carriers will operate separately.
In related news Aegean Airlines has retired its last Boeing 737.
News link:
Aegean Airlines adds “Discover the new Acropolis museum” titles and image to A320-232 SX-DVU
SX-DVU A320 Aegean closeup, originally uploaded by maarten-sr.
Aegean Airlines (Athens) in late November added these promotional titles and images to its Airbus A320-232 SX-DVU (msn 3753) to help promote the new Acropolis Museum.
Copyright Photo: Maarten Visser.
Aegean Airlines to join the Star Alliance
Aegean Airlines (Athens) will join the Star Alliance. The company will soon start the integration process which is expected to take around 12 months. Aegean is expected to become the 26th member.
Aegean and Olympic facing a day of strikes
Please click on photo for full view and caption.
Aegean Airlines (Athens) and Olympic Airlines (Athens) today are facing a long day of country-wide general strikes in Greece including the air traffic controllers. Aegean has already cancelled 50 flights and Olympic has cancelled 140 flights. The workers are protesting low wages and job cuts.
Olympic Airlines to be sold to Marfin
Please click on photo for full view and caption.
Olympic Airlines (Athens) will be sold to the Marfin Investment Group despite a higher bid by Aegean Airlines (Athens). The government of Greece rejected the Aegean bid and is now finalizing the deal with Marfin.
Aegean makes a surprise bid for Olympic
Please click on photo for full view and caption.
Aegean Airlines (Athens) has made a surprise last-minute bid for state-owned Olympic Airlines (Athens). Aegean presented a bid of $113 million for the OA’s operations and $25 million for the ATH base. This new bid outbids the prevailing single bid by the Marfin Investment Group. Aegean also bid $75 million for the new Pantheon Airways set up as a paper airline by the government of Greece to take over OA’s operations debt-free. This move by Aegean is seen as a strategy to consolidate airline operations under one brand in Greece. Aegean has gradually been taking away market share from OA. If successful, which brand will survive?
