LAXintl From United States of America, joined May 2000, 26290 posts, RR: 50 Posted (4 years 5 months 1 week 3 days 13 hours ago) and read 7815 times:
Aegean Airlines posted its first half 2010 results today. Carrier saw its first loss since 2004, reporting a €32.6m loss on essentially flat revenues and passengers compared to a €13.4m profit in 2009.
Carrier citied, the Greek economic crisis which has reduced Greek origin traffic, rise in fuel cost, and drop in Euro compared to Dollar as the principal negative drivers.
As a result, the carrier will reduce capacity going into the winter. 2 RJ100 Avro’s were returned to lessors as scheduled in July, and the carriers two ATR-72s will now be withdrawn in September.
Due to the weak environment and continued losses, two domestic and three international routes will be discontinued.
The company stressed the importance of its planned merger with Olympic, which if approved could by the summer 2011 provide better market conditions.
In good news, the carrier will commence code-share with Continental including on the ATH-EWR route effective September 1st.
oa260 From Ireland, joined Nov 2006, 27516 posts, RR: 60
Reply 2, posted (4 years 5 months 1 week 3 days 8 hours ago) and read 7417 times:
Quoting mayor (Reply 1): I recall reading somewhere that the planned merger with Olympic might be in jeopardy. Am I wrong?
This will actually go slightly in favor of the merger, it shows that due to the economic crisis and seasonal traffic a merger is the most sensible idea for the Greek aviation market. Giving up routes and slots will also make their case stronger at the EU enquiry.
IndianicWorld From Australia, joined Jun 2001, 3041 posts, RR: 0
Reply 3, posted (4 years 5 months 1 week 3 days 8 hours ago) and read 7378 times:
Greece really only needs 1 major carrier, as it is a relatively small market, in both population and area. It has ample competition from foreign airlines, so 1 main carrier would be a strong move for the country.
LAXintl From United States of America, joined May 2000, 26290 posts, RR: 50
Reply 9, posted (4 years 5 months 1 week 2 days 23 hours ago) and read 6452 times:
Unless the merger gets approved, I believe Aegean is setting itself up to shrink domestic flying.
With the return of the 2 RJ100, and its sole 2 ATR-72s, only 4 RJ100s are left which means much of the domestic flying will be on larger A320/A321s which are too big for many markets.
Also the carrier saw a pretty anemic system load factor of 64.8%, which with a decline in yields certainly does not help the situation.
Kinda a shame as Aegean has done quite well till now posting continual profits (often small, but never the less profit) for the last 5-years, but this 6-mos report essentially produced what is a massive €50m shift in earnings on a small'ish revenue base of €267.4.
From the desert to the sea, to all of Southern California
mayor From United States of America, joined Mar 2008, 10761 posts, RR: 14
Reply 10, posted (4 years 5 months 1 week 2 days 23 hours ago) and read 6431 times:
I would think that Aegean needs the ATRs for some of the island flying that it stands to inherit from Olympic. Maybe even the RJs. Who else, besides the ferry services, offers service to most of the Greek islands?
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
ODAFZ From Afghanistan, joined Jul 2004, 357 posts, RR: 5
Reply 13, posted (4 years 5 months 1 week 2 days 21 hours ago) and read 5711 times:
On the other hand, at Olympic Air"
ATH-BRU is reduced from2 daily to 1 daily
ATH-MXP is canceled
ATH-CDG is reducedf rom3 to2 daily flights and
ATH-LHR is reduced from 21 to 17 flights per week
But increased capacity and flights on the following sectors :
ATH-FCO 320 replaces 319, ATH-SOF 11weekly DH8 replaced by A319
ATH-TIA is increased to 12 flights from 7 flights per week
ATH-BUH increases from11 to 12
SKG-LHR is launched as 3 weekly flights per week
Whereas Aegean increase capacity on ATH-CAI from RJ85 to A320, ATH-FCO increases to 16 weekly instead of 14, SKG-FRA from A320 to A321.
I see more of a restructuration and redistribution of routes at both carriers to maximize their potential in view of their pending merger
Quoting FlySSC (Reply 6): The problem is that merging two "donkeys" will not create a "race horse" if a serious reorganisation plan is not decided ...
I do resent dear sir those blank statements which are not acceptable, what reorganisation do you propose.
Not long time ago there were 2 donkeys operating in my country , they merged and the result was a race horse that was instrumental in creating one of the first a hub-and-spoke system known to the world of aviation. if your memory fails you the 2 companies were MEA and Air Liban. I do expect and i wish that the merger between the 2 companies l yields a race horse , isn't Greece the birth place of Pegasus after all.
The whole thing of cutting down routes and combining A3/OA network/schedule is the best way . What airlines in Europe are not in loss making mode. Olympic Air are well placed with a decent product to survive, as far as Olympic is concerned they have made a leap forward in their offering both on the ground and onboard.
oa260 From Ireland, joined Nov 2006, 27516 posts, RR: 60
Reply 18, posted (4 years 5 months 1 week 2 days 20 hours ago) and read 5365 times:
Quoting Airportugal310 (Reply 17): In this case, if you disagree, then you should educate those of us who do not understand why his opinion is 'incorrect'.
Aegean as stated above has made a profit for the last 5 years , just because this year it doesnt like many others doesnt make it a donkey. There are plenty of others in Europe namely in the Iberian peninsula who can have that title.
FlySSC From United States of America, joined Aug 2003, 7443 posts, RR: 57
Reply 19, posted (4 years 5 months 1 week 2 days 19 hours ago) and read 5039 times:
Quoting ODAFZ (Reply 13): I do resent dear sir those blank statements which are not acceptable, what reorganisation do you propose.
Quoting oa260 (Reply 15): Your knowledge of the two airlines is quite limited if thats the best you can come up with. Not smart
Come on ... OA has always been a big joke !
Changing from Olympic Airways to Olympic Airlines was not enough to turn an Administration into a reliable and profitable airline.
What reorganisation plan do I propose ?
- Fire the thousands of employees who are paid by OA for just ... nothing
- Cut the corruption that "gangrenes" the airline at all levels, like it gangrenes the whole country more and more each and every day
- Explain to the OA staff the notion of "Customer" and "service" ... Everybody who has experienced OA and the ground staff at ATH knows what i am talking about.
- Rationalize the fleet and build schedules to organize ATH as a real, reliable and attractive Regional Hub
- Stop considering potential customers as just cash cows, like by charging up to 157€ for a 15 minutes domestic flight ATH-JMK
ALITALIA was in the same situation not so long ago ... it is now on the good way to recovery.
OA must follow the same route. So does Aegean.
Quoting ODAFZ (Reply 13): Not long time ago there were 2 donkeys operating in my country , they merged and the result was a race horse that was instrumental in creating one of the first a hub-and-spoke system known to the world of aviation. if your memory fails you the 2 companies were MEA and Air Liban.
The situation was far different back in 1963. Moreover, MEA and Air Liban were certainly not donkeys !
oa260 From Ireland, joined Nov 2006, 27516 posts, RR: 60
Reply 21, posted (4 years 5 months 1 week 2 days 19 hours ago) and read 4899 times:
Quoting FlySSC (Reply 19): Come on ... OA has always been a big joke !
Changing from Olympic Airways to Olympic Airlines
You have kind of hung yourself with your further elaboration Suggest you read what happened last year
But just to give a head start :
Olympic Air is the largest Greek airline by destinations served, formed from the privatization of the former national carrier Olympic Airlines. Olympic Air commenced limited operations on 29 September 2009, after Olympic Airlines ceased all operations, with the official full-scale opening of the company taking place two days later on 1 October 2009. Its main hub is Athens International Airport, with Thessaloniki International Airport and Rhodes International Airport serving as secondary hubs. The airline is headquartered in Koropi, Kropia, East Attica.
The OA you speak of ceased to exist as a company last year.
The ground staff / civil servants all went with the old company also so again they dont exist anymore.
Some recent reviews :
OLYMPIC AIR customer review : 12 August 2010 : by Brett Watson (Australia)
Trip Rating : 9/10
Rhodes-Athens business class. Staff friendly and attentive with a good standard of English. Food a small salad type meal. On arrival at ATH business pax were provided with a separate bus to the terminal, arrival was quick and efficient.
OLYMPIC AIR customer review : 10 August 2010 : by J Mitchell (Netherlands)
Trip Rating : 10/10
IST-ATH and ATH-AMS. Seamless and quick check-in, boarding and baggage. Modern, clean aircraft (B737 and A320). Meals were great and surprisingly substantial for short flights. Good experience and would fly Olympic again.
Sorry its black and white what you wrote those are the facts you were mistaken and you have no evidence to back it up to the contrary. Speak to those that actually use the product and know the new airline. It is a tad naive to compare an old company that doesn't even exist anymore with a private company that is nothing like the previous and has no other association other than they leased the logo. The product and experience speak for themselves. You cant make brash statements about a company that you have no personal knowledge of or understanding. To do so is quite unprofessional and wrong. The government owned company and product you talked of ceased to exist you need to understand that.
: Two airlines were branded donkeys with no arguments to back that opinion. Yet when someone suggests the opposite, they are asked to explain themselve
: Completely off topic, but I'm asking here since the audience following this thread may know. What is the disposition of the 4 former Olympic Airlines
: I flew out of Athens two weeks ago, they were still there Ummm, no, OA is now a private company with a completely new fleet, crews and product. It is
: I'm not calling the new OA a donkey, Only time will tell if the airline has turned the corner. At no stage was Aegean ever a donkey - in fact that the
: I was wondering the same , I havnt been in Athens this Summer, I guess they will leave them to decay! They will end up like the B747 at Hellinikon. T
: It is surprising that there are no big charter-airlines in Greece, the way there are in Turkey. I believe tourism has been a big industry in Greece, c
: certainly but I stressed it is one of the first and not the first ( it is certainly the first in the Middle East). Another unsupported blank statemen
: Simply a bigger place; 7 times more population, 3 times bigger economy, 6 times more acreage and generally a younger population. Bigger the pie, more
: Its going to be interesting in the next couple of months/years to see what will happen to Aegean if the merger with Olympic Air happens and if it does
: Care to elaborate on the above, your sources?, as you have read from the thread starter , that revenues and pax carried were flat, with the increase