Tag Archives: GJECV

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.

Olympic Air
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: AG Slide Show

Olympic Air (3rd): AG Slide Show

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 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

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)

Domestic 19 38
International 51 7


Annual Financial Results FY 2011 (in million €) 

Revenue 668.2 240.5
Net losses after taxes (27.2) (37.6)


Passenger traffic 2012 (estimate in million passengers)

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.