Greece’s Two Major Airlines Seal The Deal

The merger of Olympic with Aegean will maintain competitive customer prices, protect levels of employment and increase our competitiveness at a European level, according to Olympic Air’s President Andreas Vgenopoulos.

Aegean Airlines

Aegean Airlines and recently privatized Olympic Air said their main shareholders -Vasilakis Group and Laskaridis Group (55.3 percent ownership in Aegean Airlines) and Marfin Investment Group (sole shareholder of Olympic Air)- have signed a binding pre-agreement on the merger between Aegean Airlines, Olympic Air, Olympic Handling SA and Olympic Engineering SA. The new company will be listed on the Athens Exchange.

The new carrier to be formed will carry the name and logos of Olympic Air, following the necessary transition and adjustment period, during which the name and logos of Aegean will be used in parallel as well.

The merger is subject to the approval of the European Competition Commission, with both companies expecting to get approval by 30 September 2010. Press reports say that this would be followed by two share capital increase plans and a merger of all activities of the two companies (expected to be completed within three to six months).

In a joint press release, both airline companies said that the merge of Aegean Airlines and Olympic Air would lead to the creation of a “national airline champion.”

The new airline should start its formal operation in the first quarter of 2011 and service 106 domestic and international routes, employ 5,850 staff members and operate a fleet of 64 planes.

Commenting on the merger of Aegean Airlines and Olympic Air, Economy, Competitiveness and Shipping Minister Louka Katseli had said that the Greek government is closely watching announcements on the merger agreement between the two carriers.

Meanwhile, the Consumer Protection Center (KEPKA) recently expressed its concern in regards to the “cooperation” between the two airlines and called for a serious and continuous monitoring of the air transport market.

KEPKA said that the merge must not have harmful effects on the economy, taxpayers and consumers.