Olympic remains tightlipped about its future and Speedwing says it is too early to say what changes will have to be made. But it is clear that by the selection of the British Airways consultancy and the new management team, the Greek Government wants some tough and rapid decision-making at the loss-making carrier.
Rod Lynch, a senior executive at the UK's public television broadcaster, the BBC, where he has been responsible for a tough restructuring plan, has become chief executive. He is supported by another two senior BA executives associated with the "turnaround" of the UK flag carrier in the 1980s: BA's current director of operations and commercial manager Concorde, Jock Lowe and, for an initial period, Peter White, former BA sales director.
Their task is to make Olympic "viable and profitable in the long term", says Speedwing managing director Steve Dunning. This includes "getting Olympic into Sparta" - the new Athens airport opening in 2001, and improving customer service.
Dunning insists that "it is very important to talk to staff and unions". Given Speedwing's task, improving labour relations may be a tall order, however. Unions called immediate strike action on hearing of the news that Speedwing had won the contract, and are suspicious of Speedwing's motives.
"Speedwing is a BA company and BA is a very competitive, European airline," says Capt Gregory Konstantellos, general secretary of Hellenic pilots association. "Olympic and BA compete directly on long-haul routes to North Atlantic destinations and to Australia as well as between Athens and London. We think that BA will seize this opportunity to throw Olympic off these routes. We're basically quite suspicious about what's going on behind the scenes.
"Speedwing should try and heal and not surrender the routes where Olympic is not profitable," he says, adding: "If Speedwing management makes an aggressive attempt to regain our lost credibility then we'll support the new management team. If, however, Speedwing's decisions means a reduction in our network then we will oppose the changes with all our strength."
Dunning says the aim is to make Olympic an "attractive partner to any alliance". This could include BA, which is considering buying an equity stake in the carrier.
Source: Airline Business
