Olympic Airways is to take 15 Next Generation Boeing 737s on 10-year leases from GE Capital Aviation Services (GECAS) to replace ageing Boeing 727s and 737-200s.
As part of the deal, the Greek flag carrier is to cancel firm orders for eight 737-800s that had been due for delivery in 2002. The earlier suspension of this deal had left the airline liable to pay interest on a $60 million instalment, which should have been handed over to Boeing in March 1998. The manufacturer has agreed to return with interest a $6 million deposit.
The agreement with GECAS calls for 11 737-700s and four -800s to be delivered between June next year and February 2002. The US company will buy Olympic's 11 737-200s, lease them back to the carrier until the new aircraft arrive and remarket its four Boeing 747-200s and two 727-200s.
The carrier says Airbus lost the competition because it could not deliver A319s until late 2003. By 2002, Olympic will operate two aircraft types - the 737 for short and medium haul and the Airbus A340 on intercontinental routes.
• Boeing has received a firm order for fifty 737s from an undisclosed customer, believed to be ILFC.
Source: Flight International
