Greek private airline Axon Airlines has emerged as the front runner of three groups bidding to acquire up to 65% of Olympic Airways. An announcement of the preferred bidder is expected within weeks.
Three groups headed by Axon, Cyprus Airways and the Greek shipping group Restis were shortlisted earlier this month by the Greek Government's advisors, Credit Suisse First Boston.
Axon, believed to have the backing of several key Greek organisations including the Emboriki Capital bank and shipping group Latsis, is seen as the favourite to be selected to start negotiations with the Greek Government. Restis and Cyprus Airways are thought to be close to withdrawing from the competition.
The bidders have all set similar conditions for the privatisation, which include a call for the new company to be reduced in size with staff cut by up to 3,000.
They also want the network re-organised to focus on increasing frequencies to high yield destinations, and wholly owned subsidiaries Olympic Aviation and Macedonian Airlines incorporated into Olympic.
There are suggestions that Olympic's engineering division could be excluded from the bids as it would be more economical to use a third party maintenance provider. A late complication is the fact that some of the bidders failed to account for Olympic's 68% shareholding in its catering arm, which increases the market value of the group.
Source: Flight International
