Chris Jasper/LONDON
Olympic Airways is reviewing contracts for Boeing 717s, Next Generation 737s and Airbus A340s as it works towards a cost-cutting business plan. The Greek carrier is also considering leasing in Boeing 737-300s or -500s as replacements for maintenance-intensive 737-200s.
The fleet review has been ordered by the new Olympic management team put in place by British Airways' Speedwing consultancy, which won a contract in June to manage the state-owned airline. Led by chief executive Rod Lynch, the team is conducting the review before reporting to the European Commission (EC) next month on its plans for Olympic. The new management must convince EC watchdogs that the carrier meets conditions required for the approval of a state aid grant.
"We are looking at the whole mix, from A340s down, and we may make changes," says Lynch. "But we have not decided anything yet and, when we do, the EC will be the first to know."
Of the outstanding orders, the biggest question mark may be over the two 100-seat 717s to be leased from Bavaria by regional subsidiary Olympic Aviation. Lynch denies the 717 leases have been cancelled, saying: "We have not changed or amended any aircraft orders".
Olympic seems likely to stick with its order for two further A340-300s, given that it has already taken delivery of two and has a long haul requirement for four aircraft to enable its four Boeing 747-200s to be retired. Olympic also has four Airbus A300s, two of which are -600R variants and may be redeployed on transatlantic services as the 747s are withdrawn.
The carrier also has eight 737-800s on order, and Lynch says these are under review. Sources add that "Olympic must decide between Next Generation 737s and the A320 family for its long term short haul needs", and that the current order is being reviewed in view of this requirement.
In the shorter term, Olympic wants to withdraw its 11 ageing 737-200 Advs, and sources say it is "considering leasing in 737-300s or -500s until the A320/737 decision has been made".
Source: Flight International
