| Journal: TWUK | Section: |
| Title: | Issue Date: 22/05/00 |
| Author: | Page Number: 24 |
| Copyright: Other |
Privatisation
Olympic Airways set to confirm 20% BAshare
Report by PAULNORRIS
OLYMPICAirways is expected to verify a 20% sale to British Airways next month.The deal, for an as yet undisclosed sum, begins the Greek national carrier’s privatisation. The sell-off is also expected to lead to Olympic joining BA in the Oneworld global alliance.
The airline’s acting general manager UK and Ireland Tom Savva said: “There will possibly be 20% with BA. A decision is due next month.”
Savva said the Greek government is expected to keep a 51% share in Olympic. The remaining 29% is due to go to institutional investors and staff, and around 20% with an airline investor.
“The Greek government can not put money into the airline anymore due to European rules on state aid so it has to be more self-sufficient,” added Savva.
He admitted BA was the most likely choice for a stake. The UK carrier provided a management team from its Speedwing subsidiary last June to steer Olympic into profitability. Savva said the rationalisation of Olympic’s network to concentrate on profitable services, under chief executive Rod Lynch, and the opening of a new Athens airport next year will make it more efficient.
Olympic is committed to at least a daily service on key European routes. This means that the new Athens-Manchester flight launched on June 19 will become a daily operation for summer 2001 instead of a thrice-weekly flight.
In preparation for the Athens-Manchester-Boston service, Olympic is opening a new office at Manchester Airport next month. It will be staffed by three permanent employees.
The new Athens airport at Spata, northeast of the capital, will have capacity for 16m passengers, twice that of the present facility.
n Olympic is preparing to fly 700 ABTA delegates to the annual convention in Kos. Savva said he was looking to offer two Airbus aircraft to delegates for non-stop flights from Heathrow.
Savva: the Greek government will keep a 51% share in Olympic