Copyright Photo: First ATR 42-600: Olympic Air (3rd) ATR 42-600 2-RLBT (msn 1005) YHM (TMK Photography). Image: 954564.
The airline group issued this statement:
Aegean Airlines Group reported a strong set of nine month 2014 results, driven by successful network expansion and Olympic Air synergies. Consolidated revenue increased by 10% to €736 million, pre-tax earnings improved to €105.4 million from €75.9 million while net earnings rose by 31% to €78.6 million from €60 million in 2013.
Αegean Airlines and Olympic Air carried 7.9 million passengers in the 9-month period to September 2014, an increase of 14% compared to 2013 with load factor at 79%. Traffic in the domestic network increased by 16% with the market showing good elasticity to lower fares. International traffic rose by 12%, with traffic out of Athens registering a higher growth rate of 18% on the back of Aegean’s network expansion and a strong rebound for the city’s incoming tourism.
Operating cash flow improved to €124 million, resulting to cash & short term investments rising to €264m at the end of September, despite the share capital return which took place in July 2014 as well as pre-delivery payments to Airbus in relation to the recently announced aircraft order.
Mr. Dimitris Gerogiannis, Managing Director, commented:
“We have managed to deliver improved commercial and financial results, driven by synergies from Olympic Air integration, network optimization targeting improved connectivity as well higher tourist flows. Our expansion strategy has yielded positive results in a period of intensifying competition and despite traffic weakness demonstrated from the Russian market.
We will continue to invest in growing our fleet and capacity for 2015, adding destinations and penetrating new source markets for Greek tourism. Our key priorities involve continuous investments in growing our network, achieving scale economies as well as focusing on new service offerings to our passengers within a fast changing competitive environment that does offer however significant opportunities to grow further.”
Copyright Photo: Antony J. Best/AirlinersGallery.com. Olympic Air is gradually being integrated into Aegean. Olympic Air now just operates aircraft of one manufacturer, Bombardier, under its brand, essentially now a regional feeder airline for Aegean Airlines. Former Flybe Bombardier DHC-8-402 (Q400) G-JECV (msn 4148) is now SX-BIT with Olympic Air.
Aegean Airlines aircraft slide show:
Aegean Airlines (Athens) reported a first quarter net loss of $11.4 million. The company issued this statement:
Aegean reports first quarter 2014 results with consolidated revenue of €133.9 million, and after-tax losses during the seasonally weakest quarter of the year of €8.4 million ($11.4 million). On a pro-forma basis, i.e. assuming consolidation of Olympic Air in the respective period last year, losses narrowed compared to after-tax losses of €13.2 million in the first quarter of 2013 while revenue showed a 1% rise.
It is noted that results are not comparable with reported parent results of 2013 given the fact that the latter set of results did not include Olympic Air (Athens) as the acquisition was completed in October 2013.
Αegean Airlines and Olympic Air carried 1.6 million passengers in the first quarter of 2014, 12% more versus the previous year. Domestic network passengers increased by 17% to 930 thousand while international network passengers reached 700,000, 6% higher versus last year. Load factor improved by 1.8 percentage point to 73%.
Operating cash flow improved significantly resulting to an increase in the company’s cash and cash equivalents to €274 million from €239 million in December 2013.
Mr. Dimitris Gerogiannis, Managing Director, commented:
“Following the acquisition of Olympic Air, the initial benefits from network synergies are already evident and along with our new pricing policy are translated to improved load factors and increased connecting traffic during this seasonally weakest quarter for the year.
Pre-bookings for the summer season as well as our traffic results for April 2014 confirm the positive trend. Our investment in expanding our network and capacity with the addition of 5 airbus aircraft and 17 new international destinations as of May/June, takes place within a rising demand environment. On the other hand, available capacity offered is substantially increased by the majority of operators active to the Greek market.
As far as Olympic Air integration is concerned, implementation is progressing in line with targets, with the full synergy and scale economies benefits expected to mature with the next 12 months. At the same time, innovation and services that add value to our customers remain a top priority.”
Copyright Photo: Antony J. Best/AirlinersGallery.com. Airbus A320-232 SX-DVV (msn 3773) of Aegean Airlines taxies at London (Heathrow) while promoting the new Acropolis museum.
The European Commission announced today its decision to approve the acquisition of Olympic Air by Aegean.
The rationale of the European Commission decision supports the absolute necessity of economies of scale to achieve viability within the Greek aviation market. The acquisition creates the conditions for the establishment of a sustainable Greek carrier, competitive within the Region and capable of supporting a growth momentum which will benefit Greek Tourism and the local economy.
Following EU approval, the acquisition of the shares of Olympic Air and the assumption of management by Aegean is expected to be completed by October 18, 2013. The total consideration for the transaction has been set at €72 m., of which €20 m. have already been paid. Upon the completion of the acquisition, Olympic Air will become a subsidiary of the listed Aegean, while the process of unification of the support functions will begin immediately. The two brands and logos of the companies will remain with each one retaining distinct aircraft and flight activity.
The Chairman of Aegean Mr. Theodore Vassilakis said:
“As of today our obligation and commitment to serve our passengers and our country become even greater. While growing in size we also have to further improve our services to be more effective in the support of all Greek regions and ensure competitive access even to the smallest Greek island. The economies of scale will allow us to offer more competitive fares on our domestic network, especially for the small islands. At the same time, the synergies will allow us to support an improved growth rate for our international network, both from Athens and the periphery, contributing substantially to the development of Tourism and the Economy “.
The company will host a press conference on October 23, 2013, following the share purchase, to present its customer offering and development plan as well as its 2014 network plans.
|Passenger traffic ( 2013 estimation in million)||6,50||1,90||8,40|
|Turnover (in million € – 2013 estimation)||630||170||800|
Top Copyright Photo: Robbie Shaw/AirlinersGallery.com. Aegean’s Airbus A320-232 SX-DVQ (msn 3526) painted in the Star Alliance colors departs from London (Heathrow).
Bottom Copyright Photo: Antony J. Best/AirlinersGallery.com. Olympic Air has been reduced down to mainly a Bombardier DHC-8/Q400 operator. Operated by Flybe, DHC-8-402 (Q400) G-JECV (msn 4148) prepares to land at London (Heathrow).
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.”
Fleet October 2012
|Airbus Α320 Family||29||7|
|Bombardier Dash 8-100||0||4|
Routes (Scheduled network – Summer 2012)
Annual Financial Results FY 2011 (in million €)
|Net losses after taxes||(27.2)||(37.6)|
Passenger traffic 2012 (estimate in million passengers)
Top Copyright Photo: Wingnut. Airbus A321-231 SX-DVO (msn 3462) is pictured on the ramp at London (Heathrow).
Bottom Copyright Photo: Ole Simon. Flybe’s Bombardier DHC-8-402 (Q400) G-JECV (msn 4148), operated for Olympic Air, arrives at Frankfurt.
Olympic Air (3rd) (Athens) on March 9 launched a new route connecting Athens with Tel Aviv. The new route is being operated with Airbus A319s and A320s.
Copyright Photo: Antony J. Best.
Olympic Air Slide Show: CLICK HERE
Olympic Air (3rd) (Athens) has been withdrawing and dropping routes to western Europe in the past year. The last city, Amsterdam, will be eliminated on March 25. The flag carrier thus basically becomes a domestic and regional carrier.
Copyright Photo: Ton Jochems.
Olympic Air (3rd) Slide Show: CLICK HERE
Cyprus Airways Airbus A320-231 5B-DBD (msn 316) LHR (Antony J. Best), originally uploaded by Airliners Gallery.
Cyprus Airways (Larnaca) and Olympic Air (3rd) (Athens) will implement a new code-sharing agreement effective March 27.
Read the full story in the Cyprus Mail: CLICK HERE
Cyprus Airways Slide Show: CLICK HERE
Copyright Photo: Antony J. Best. Please click on the photo for additional details.
Olympic Air (3rd) Airbus A319-132 M-ABCJ (SX-OAL) (msn 3252) SEN (Antony J. Best), originally uploaded by Airliners Gallery.
Olympic Air (3rd) (Athens) announced on March 2 it will drop all flights to Brussels (March 27), London (Gatwick-March 27), Paris (CDG-May 2) and Vienna (March 27) as part of a route reorganization after the European Commission rejected its proposed merger with Aegean Airlines (Athens).
Olympic also announced it will appeal the January 26 ruling.
Olympic is reorganizing its route system while increasing domestic flights and expanding flights to Amsterdam, Belgrade, Bucharest, Cairo, Istanbul, Larnaca, Sofia and Tirana.
Read the press release: CLICK HERE
Copyright Photo: Antony J. Best. Please click on photo for additional aircraft information.
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.