Alitalia7e7
Topic Author
Posts: 184
Joined: Thu Mar 04, 2004 11:10 am

Olympic Airways - What Is Happening

Thu Apr 01, 2004 1:58 pm

Olympic Airways is under EU scrutiny over money paid from the Greek Government to the airline. As we know under the EU rule, governments cannot hand money to airlines that cannot manage themselves.

I know Olympic has downsized and only flies to a handful of international destinations and has grounded 2 A340's. Leaving only 2 to fly to New York and Canada.

Has anyone got any information on what Olympic is doing? What is its future etc?
 
iakobos
Posts: 3255
Joined: Wed Aug 06, 2003 6:22 pm

RE: Olympic Airways - What Is Happening

Thu Apr 01, 2004 7:20 pm

http://www.athensnews.gr/athweb/nathens.print_unique?e=C&f=13058&m=A33&aa=1&eidos=S

This recent article in the weekly Athens News sums up the situation.
OA's future looks very uncertain, to say the least.
 
Pe@rson
Posts: 16003
Joined: Sat Jan 13, 2001 6:29 pm

RE: Olympic Airways - What Is Happening

Thu Apr 01, 2004 10:27 pm

OA is, I believe, one of Europe's most unprofitable carriers. One reason for this might be that whenever it tries to change, employee strikes occur. Accordingly, there is no real incentive to try to change, for whenever it does, no changes actually occur. It's a big shame.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
iakobos
Posts: 3255
Joined: Wed Aug 06, 2003 6:22 pm

RE: Olympic Airways - What Is Happening

Thu Apr 01, 2004 11:10 pm

Pe@rson
Correct, but OA staff are not regular "employees", they are civil servants, appointed throught clientelism and political affiliation, and they joined a union.
The result is their job is 300% guaranteed, whatever they do or dont do.
These people are entitled to a lengthy list of bonuses (working shift, night time, etc...), something they would loose if the government was forced to reposition them into Ministries or parastatal administrations.
Moving such a monolith is too much, even for an Hercule.

So, the first smart move was to downsize the monolith, by splitting it into smaller parts. This was done (Olympic Airlines / technics / catering / etc..), but now the EU seems willing to get to the real figures and procedures of the perenial government subsidies, which means a very heavy fine down the line.
Who will pay ? the taxpayer of course, but he has already paid for so many years for OA...
Political irresponsibility ? well, the politician who would dare to face civil servants unions is not born yet in this country.

The differences with staff and service at a privately run airline, i.e. Aegean, are striking.
 
Pe@rson
Posts: 16003
Joined: Sat Jan 13, 2001 6:29 pm

RE: Olympic Airways - What Is Happening

Thu Apr 01, 2004 11:22 pm

Thanks for your detailed reply! Certainly an interesting situation.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."

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