Tag Archives: Olympic Air

Aegean Airlines Group reports strong passenger growth and an increased profit of $96.5 million for the first 9 months

Aegean Airlines Group (Aegean Airlines and Olympic Air) (Athens) reported its net profit for the first nine months increased 33 percent to €78.6 million ($96.5 million).

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:

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Aegean Airlines reports a first quarter net loss of $11.4 million

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.

Aegean Airlines: AG Slide Show

Olympic Air (3rd): AG Slide Show

 

 

Aegean Airlines to launch Athens-Copenhagen flights on May 22, 2014

Aegean Airlines (Athens) will start a new route, three days a week, between Athens and Copenhagen starting on May 22, 2014. The new route will be operated with Airbus A32os. The Copenhagen route is part of an overall expansion plan in 2014 (see below).

Previously on October 31 Aegean outlined its future plans now that Olympic Air has been acquired:

Aegean Airlines presented the benefits, arising from the acquisition of Olympic Air, for the company, the passengers, the society and the Greek tourism, as well as its overall strategy, during a press conference held on October 31 in Athens.

In the immediate period of the next 6 to 14 months, following the acquisition of Olympic Air, the resulting synergies will lead to an enhanced fleet and an immediate expansion of the network, to the enhancement of the connectivity in Greece and abroad, as well as to cost savings from the consolidation of Administrative Services, with benefits saving up to €35 million annually.

Aegean’s objective and commitment is to pass these benefits to the passengers with more competitive rates, enhancement of privileges for loyal customers of both companies and network expansion.

In terms of benefits arising regarding the prices, Aegean has already announced the launch of two new categories of fares in economy class, the GoLight and Flex fares, with prices starting from €24 to Athens, which ensure money-saving and unlimited flexibility respectively. These new fares will be offered to Olympic Air’s passengers from February 2014.

Moreover, following a recent meeting with representatives of the Greek region, the company announced a package of initiatives to support the remote areas of Greece, by integrating the second lowest fare of €39 from/to remote areas in order to boost the demand, by introducing new charges for the connection between the remote islands and abroad with a significant reduction in travel cost up to €140, as well as by increasing capacity during July – September, at no additional cost to the state, where it is commercially and operationally feasible.

Aegean will make dynamic start in 2014 also in terms of its network, with a further expansion of international destinations and new routes.

Analytically, Aegean announced the addition of 15 new destinations from Athens in 2014, reaching to 47 overall international destinations from Athens. Specifically the new destinations include: Birmingham in England, Marseille and Nantes in France, Zurich in Switzerland, Hamburg, Hanover and Nuremberg in Germany, Copenhagen in Denmark, Catania in Italy, Abu Dhabi in the United Arab Emirates, Beirut in Lebanon and Paphos in Cyprus, as well as four additional cities including Stockholm, Sweden or Oslo in Norway, Ljubljana in Slovenia, Dubrovnik in Croatia.

Overall in 2014, 45 to 50 new routes will be added from the eight bases of the company in Athens and in the Greek region, including the new base in Chania.  As a result, Aegean and Olympic Air will jointly cover in 2014 a network of more than 250 routes, of which 205 or more are international routes and 47 to 50 domestic routes.

The progress so far and the development of Aegean is based on collaborative effort and support by six major business groups (Vassilakis, A & P Laskarides Constantakopoulos A., D. Ioannou, G. David, Piraeus Bank) and 52,000 shareholders who continue to support the company into its dynamic new course that appears after the acquisition of Olympic Air.

Copyright Photo: Christian Volpati/AirlinersGallery.com. Airbus A320-232 SX-DGB (msn 4165) taxies at Paris Charles de Gaulle Airport (CDG).

Aegean Airlines: AG Slide Show

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: 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

  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.