Chris Jasper/LONDON
Speedwing, the consultancy division of British Airways, has won a 30-month contract to manage state-owned Greek airline Olympic Airways, with the UK flag carrier concluding a parallel deal which may allow it to take a stake of up to 20% in the ailing airline.
Greek transport minister Anastasios Mandelis says Speedwing won the contract because of BA's success in transforming its own fortunes, while BA, in turn, describes the deal as "one of the largest and most significant" yet placed in the world airline industry. It was concluded "in the face of strong competition from other agencies in Europe and the USA", BA adds.
The move has not been entirely welcomed at Olympic, with unions threatening to strike and demanding that the deal be scrapped. The Greek Government describes the turnaround of Olympic as a key element in the restructuring of the public sector before joining the European Monetary Union in 2001, while BA says part of Speedwing's brief is "preparation for possible privatisation". The airline adds that "separately from the Speedwing contract, BA has indicated it may be interested in taking an equity stake in Olympic following its successful turnaround".
The consultancy is to install a new management team to run Olympic, with Rod Lynch - a former senior manager with BA, who once headed its south Europe region, becoming chief executive.
The new management must confirm - or otherwise - Olympic's already deferred order for eight Boeing 737-800s, and two remaining Airbus A340-300s (two have been delivered). Olympic, which lost Dr6.86 billion ($220 million) in 1997, is also involved in a lingering dispute with the European Commission over state aid.
Source: Flight International
