Olympic Airways Sale On Hold

Recent events have created new conditions under which the privatization of Olympic Airways must be carried out. Although the Greek government gave the green light to privatization advisers Credit Suisse First Boston to continue negotiations with Axon Airlines until October 17 -a 35-day extension- world events after the attack on New York may place everything on hold.

Olympic Airways has to prepare for a jump in oil and insurance costs and compensation claims for canceled flights to the USA and Canada. Furthermore, it could see further problems should the USA initiate retaliatory action against the Middle East. During the recent crisis in the Balkans, Olympic Airways had to pay $50 in re-insurance cover for each passenger.

Axon, however, has being quoted as saying it will not change its bid -Axon’s bid was evaluated as the best by CSFB- but rival bidders Integrated Airline Solutions (IAS) of Australia, and Cyprus Airways, which had improved their offers and brought new partners into their respective consortia, now may do so.