Gus Vlassis/ATHENS
The Greek Government has a new plan for the privatisation of Olympic Airways, proposing that a majority stake and management control be sold to a Greek industrial investor.
At least five potential bidders are understood to have shown an interest in Olympic, including figures linked with Cyprus Airways, Axon Airlines, Greek Airlines and the UK's easyJet.
Olympic's new chief executive, Dionissis Kalofonos, a former director of the Greek civil aviation authority, met the Greek finance and transport ministers to hammer out details of a plan to replace one which would have seen British Airways take a 20% stake in the airline. BA pulled out of the deal in June, with Kalofonos replacing Rod Lynch of the UK flag carrier's Speedwing consultancy as chief executive.
According to the new proposal, the terms of which are due to be finalised by the end of August, a stake of 20-51%, plus management control, will be offered, with consultation with interested parties taking place before the tender is made. Credit Suisse First Boston is to re-evaluate Olympic Airways and prepare it for privatisation.
Investors must guarantee that no domestic routes will be scrapped. Redundancies have not been outlawed, but any job losses will be subject to negotiation with Athens.
Five Greek businessmen are reportedly interested. Three have airline interests: Thomas Liakounakos, head of Axon Airlines, hopes to bring in other Greek carriers, tour operators and an investor to whom he is linked via plans to invest in Hellenic Aerospace Industries; Pericles Panagopoulos has reportedly contacted the Bank of Cyprus about a deal that would bring in Cyprus Airways, plus US and leisure interests and Stelios Haji-Ioannou of UK-based easyJet may also bid.
The two other reported bidders are Constantinos Aggelopoulos, co-owner of Greek Steel Works, in co-operation with the Bank of Pireous, and shipping magnate Spyros Latsis, head of the Euro Bank Group of companies.
• Olympic has effectively frozen its order for 15 Boeing 737s from General Electric Capital Services, saying the new management team needs to review the deal. "The decision was made by the Speedwing management, but no document was signed," it says. "We will be having a special board meeting in a few weeks to decide whether to take the aircraft."
Source: Flight International
