Tag Archives: Aegean Airlines

Aegean Airlines receives EC approval to acquire Olympic Air

Aegean Airlines (Athens) today won approval from the European Commission to acquire rival Olympic Air (3rd) (Athens). The company issued this statement:

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.


	AEGEAN	Olympic Air	Total
Fleet (10/2013)	30	15	45
Personnel (10/2013)	1480	610	2090

Passenger traffic ( 2013 estimation in million)	6,50	1,90	8,40
Domestic	2,50	1,65	4,15
International	4,00	0,25	4,25

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).

Aegean Airlines:

Olympic Air (3rd):

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 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

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

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

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.

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.

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.

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

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.