KLMA330
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Five Bidders For Olympic Airlines

Fri Apr 15, 2005 12:57 am

The Greek government says it has received bids from five parties interested in buying struggling state carrier Olympic Airlines.

http://news.bbc.co.uk/1/hi/business/4444137.stm
 
A350
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 1:26 am

Quote:
Greece's Aegean Airlines and Intro, a firm run by the owner of German budget carrier DBA, are among the bidders.

The latter would be really  cool 

A350
 
Beaucaire
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 1:38 am

Dont' think INTRO is genuinly interested to pump tons of millions into Olympic.
Wöhrl ( ower of INTRO ) and minority shareholder in DBA does not have enough cash to float seriously Olympic.
Serious bids most likely will come from greek or UK investors.
Please respect animals - don't eat them...
 
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LAXintl
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 1:40 am

Sounds like some of the same parties as in the past.
From the desert to the sea, to all of Southern California
 
iakobos
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 2:22 am

The BBC article is outdated by about 4 weeks.
Yes, among the initial seven expressions of interests, five parties went a step further and could have access to detailed information on Olympic.

It is (widely) believed that Intro (Deutsche BA's boss) was interested only in getting crucial information on a would be competitor.

The next step is for the remaining interested parties (2-3 ?) to put their accountants at work and review whatever is available of OA's financial data.

As far as I know this is in progress, meaning we have no yet reached the point where binding bids will be made, though it is expected in the coming days.
 
WesternA318
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 2:49 am

Would I be wrong in assuming that if Aegean took over, the result would be a lot like the Swisssair/Crossair/Swiss Int'l amalgamation? Could Aegean pull this off after their purchase of Cronus? How did that go? Does Aegean even plan Trans-Atlantic service or ANY service with bigger planes than 737s?
 
iakobos
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 10:49 pm

A correction is due: BBC was informed more promptly than I was, a more time-conscious mole probably...

Yes, the remaining five bidders did make binding bids in the last 2-3 days.

The bidders:
a Greek group unincidentally comprised of Aegean's owners
a Greek-US group called Olympic Investors (with Seabury as consultant)
a Dutch group named Sure Estates
a British group, Kelsch
the owner of Deutsche BA

A final shortlist of 2 or 3 bidders should be drawn in the coming days.
 
jdaniel001
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 10:57 pm

So Greek law permits foreign investors to own a majority of a company?
We Are UNITED!
 
Orion737
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RE: Five Bidders For Olympic Airlines

Fri Apr 15, 2005 10:58 pm

I hope Olympic stays in Greek Hands. It is a proud Greek airline and I hope they survuve these difficult times and prosper with new routes and equipment.

Would love to see Olympic get new aircraft and the re-inntroduction of Sydney and Melbourne routes. Loads of Greeks in Aus, demand is high!
 
KLMA330
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 1:43 am

I'm sorry to say Orion737, but I've flown Olympic many times over the years trans-atlantic, and IMHO they have nothing to be proud of... rude staff, crappy planes, and never again! To be honest, not sure why anyone would want to sink good money into a company like that, but again, they probably know more than I do  Smile
 
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PA110
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 1:47 am

Quoting KLMA330 (Reply 9):
they have nothing to be proud of... rude staff, crappy planes, and never again!

I second that! I say let 'em fail and then start again from scratch. Aegean does a fantastic job. Their money would be much better spent investing in long hall operations.
It's been swell, but the swelling has gone down.
 
iakobos
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 2:19 am

Quoting Jdaniel001 (Reply 7):
So Greek law permits foreign investors to own a majority of a company?

Yes, you thought it was not the case ? For info, Greece is a member of the EU.

Quoting Orion737 (Reply 8):
I hope Olympic stays in Greek Hands

I hope OA falls into competent hands, whatever the ID of the owners and executives. Nationalistic proudness feeds no one in the 21st century.

What's for sale ?
a brand name (of doubtful value)
an operating licence
4 x ATR-42
7 x ATR-72
7 x B737-400
some GA planes and helicopters
15 leased 737-300 & 400
4 leased A340 (leased to the Greek government !)
2,150 staff incl. 500 pilots, 700 f/a, 42 staff of manager rank
some outstanding contracts (eg. catering)
 
WesternA318
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 6:48 am

What about the Dornier fleet? Do they still own/lease them or are they all out of their control?
 
Elagabal
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 10:27 am

Quoting Iakobos (Reply 11):
I hope OA falls into competent hands, whatever the ID of the owners and executives. Nationalistic proudness feeds no one in the 21st century.

No luminary here, but still, for what it's worth: welcome to my respected users list.
 
olympic707
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 11:53 am

Quote:
I hope Olympic stays in Greek Hands. It is a proud Greek airline and I hope they survuve these difficult times and prosper with new routes and equipment.

Would love to see Olympic get new aircraft and the re-inntroduction of Sydney and Melbourne routes. Loads of Greeks in Aus, demand is high!

I agree, it should stay in Greek hands. Re-introduction to Australia and more cities in the U.S. BWI would be nice.  yes 
I love OA, best airline to Greece.  bigthumbsup 

Yanni
Fly Olympic - Aviation GREEK STYLE!
 
olympic707
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 12:10 pm

Quote:
Quoting KLMA330 (Reply 9):
they have nothing to be proud of... rude staff, crappy planes, and never again!

I second that! I say let 'em fail and then start again from scratch. Aegean does a fantastic job. Their money would be much better spent investing in long hall operations.

OA has nothing to be proud of? How about their safety record, pilots, airplane maintenace, food?

Rude staff? I guess they are rude if you want to have baby sitters and BUTT KISSERS as F/As.

Yanni
Fly Olympic - Aviation GREEK STYLE!
 
WesternA318
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 12:18 pm

I'm going to have to agree with you Yanni, although the only OA flight Ive been on was the A300-600 flight ATH-LHR two weeks ago. The werent too shabby, and the drinks were flowing anyways, lol.
 
6thfreedom
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RE: Five Bidders For Olympic Airlines

Sat Apr 16, 2005 1:05 pm

Quoting Olympic707 (Reply 14):
I agree, it should stay in Greek hands. Re-introduction to Australia and more cities in the U.S. BWI would be nice.   

Folks, from where I sit, things have moved on. OA had its opportunity in the 1990's, but it missed it. There is no chance in hell that OA could re-introduce Australian services and make them profitable?

Why?

Since OA quit Australia, the following has happened:
*EK has increased to 5pw, some of these direct, and has also opened up DXB-MEL/SYD non-stop. Therefore u can now get 5pw one-stop with EK
*GF operates daily from SYD to ATH, albeit as a 2 -stop
*SQ and TG continue to operate 3pw each, and now are ranked 1 and 2 for market share in the Australian market.
* QR will commence 6pw in mid-June, and will open Australian within 12 months or so.

The opportunity for OA in the past was amazing, and its a shame their management couldnt see it. OA has one of the best networks in Europe, and from the point of view of Europe-Asia-Australia is one of the most direct routings, involving no backtracking, unlike the QF/BA offering! They failed to realise the value of this network, and in my eyes, did not exploit it. With the right marketing and different attitude, OA had the potential to operate daily ATH-MEL/SYD services, and have them full-year round.

Quoting Iakobos (Reply 11):
I hope OA falls into competent hands, whatever the ID of the owners and executives. Nationalistic proudness feeds no one in the 21st century.

well said. Nothing more to add.
 
trintocan
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RE: Five Bidders For Olympic Airlines

Sun Apr 17, 2005 8:22 am

Iakobos, very well said. I wish there were some more people with your kind of vision in the Caribbean where the aviation scene is eerily similar to that of Greece. Over there the main airlines (JM and BW) are totally bankrupt, haemorrhaging money and back in State control after privatization efforts fell flat. Yet, any talk about getting them and the other regional airlines to work together is always shot down promptly by politicians, each Island trying to defend and protect its turf but at considerable expense. Meanwhile the foreign airlines, AA in particular, have a field day in the region. Even any suggestion of bringing in experts from outside the region to help guide the airlines to profit is seen with much suspicion. It seems as though people like the status quo!

As for Greece and its national airline Olympic Airlines, well, I hope that whoever comes in is able to reverse the airline's fortunes and make it a top-flight carrier within Europe and beyond.

TrintoCan.
Hop to it, fly for life!
 
CXYYZ
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RE: Five Bidders For Olympic Airlines

Sun Apr 17, 2005 3:32 pm

Quoting Olympic707 (Reply 15):
Re-introduction to Australia and more cities in the U.S.

If I'm not mistaken, OA cannot grow its U.S. service because Greece is rated as a Category 2 country by the FAA's IASA.

My experience with OA in 2001 left a somewhat sour taste in my mouth. Three of my four flights were delayed, one by 8 hours, they still permitted smoking on the ATH-CAI route, and the cabins their 737-400s were rather dated. That said, I did like their A340s, I distinctly recall frequent beverage service and because I was scheduled to have a long layover between connecting flights, I was put up at a hotel with shuttle bus service, all compliments of the airline. The thing that makes me hesitant to fly OA again is their on-time performance, which I continue to see some comments about elsewhere.
 
iakobos
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RE: Five Bidders For Olympic Airlines

Sun Apr 17, 2005 8:16 pm

Quoting Olympic707 (Reply 15):
OA has nothing to be proud of? How about their safety record, pilots, airplane maintenace, food?

I almost fully agree on the technical part of OA, which by the way is no longer part of O Airlines but O Service, this translates (add the pilots) into a first class safety record.
Much less can be said of cabin maintenance, I cannot tell how many times the seat frame was broken or seriously damaged, belts or their locks were broken or inoperative, the folding table could not fold, etc.... this is something passengers are directly confronted with (comfort and safety), as opposed to the perfect integrity of the frame or the smooth running of the engines.

Food: OA cannot be rated among the good tables in the air, but it is not bad either. Again, catering is no longer part of Olympic, it is subcontracted.

Pilots: the local saying goes like this: pilots come from the military so they are good. Understand what you want.
A rather recent incident with casualties (incl. a deputy minister) was attributed solely to the two senior OA captains flying the Falcon plane (flown, operated and maintained by OA).... just to put things in perspective.


Quoting PA110 (Reply 10):
Aegean does a fantastic job.

Agreed, Aegean does an outstanding job and there is no surprise that locals fly them instead of OA whenever possible. A commendable company if you ask me.
What a difference between their f/a's and OA's (as well as ground personel), though they are all Greeks.
Being a civil servant with guaranteed rights and salary for life or an employee required to perform lead to extremely different attitudes.

Quoting Olympic707 (Reply 15):
Rude staff? I guess they are rude if you want to have baby sitters and BUTT KISSERS as F/As.

Typical traditional Greek reaction. Politeness and civility were considered the artificial layers of a deeply ugly cheating character, squareness/rudeness was proof of honesty. Times are changing, even here.
Nobody is requesting f/as to be butt kissers, but every customer is entitled to be treated with a certain dose of courtesy, not ?
 
olympicbis
Posts: 162
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RE: Five Bidders For Olympic Airlines

Sun Apr 17, 2005 8:48 pm

Iakobos,
You are so right especially about "reply 15". As far as I am concerned, I think Olympic failed to capitalize on the traditional "Greek Hospitality" element. Had they been clever enough to use this concept and make it a key feture of their onboard service, what a difference this could have made ! That was the case before 1974, when they were in private hands.
What they are lacking is mainly consistency. From 1995 till 2000, I had many flights on Olympic with extraordinary FA's, and some other flights where you would almost be afraid to ask for a glass of water.
I would like to see them with a new corporate ID - but please keep the name & rings on tail -, a new fleet of A319s - 320s - 321s for short-haul and A330s-A340s for long-haul, and Aegean airline cabin crews. Would be close to perfection.
 
6thfreedom
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RE: Five Bidders For Olympic Airlines

Mon Apr 18, 2005 8:23 pm

So all things going to plan, when is a final decision and a sale likely to eventuate??

Also, with respect to Australian/Asian ops, is anyone able to offer any insights as to how successful the daily codehare with GF has been?

I can tell you from an outbound perspective that VERY, VERY few Melburnians use the service via SYD to travel to ATH.
 
WesternA318
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RE: Five Bidders For Olympic Airlines

Sat Apr 23, 2005 3:14 am

What ever happend to the routes to ORD LAX and BOS?
 
iakobos
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RE: Five Bidders For Olympic Airlines

Sat Apr 23, 2005 4:12 am

From Greece to Heard Island:

The government hopes/hoped to conclude by end of this month or about
(it will be Easter here on May 1), and until now the various steps (conducted by Lazard Frères) have been according to plan, so we might well expect something in the coming days.

The party in power is experiencing a free fall in public ratings, hence a successful sale would come in nicely.

For info: OA lost 25 million € per year (roughly 32m$) on the Gr-Aus route.
Wondering where (pragmatic) people find the potential....
 
WesternA318
Posts: 4581
Joined: Sun Oct 17, 2004 11:55 am

RE: Five Bidders For Olympic Airlines

Sat Apr 23, 2005 7:09 am

Has Olympic thought of a possible downsizing to just inter-continental/Trans-Atlantic flights and leaving the Intra-Europe and Domestic flying to Aegean?

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