Finally some good news about Olympic Airlines. First the bad news, two weeks ago the government rejected all bids for the company. They have been trying to restructure or sell the money losing business for years but nobody wants to pay what the government can politically accept. Meanwhile the EU has ordered illegal subsidies returned to the taxpayer and the airline's always bad service--like any government owned business, I might add--has deteriorated. Read our sorry example HERE
This week it was announced that the Marfin Investment Group has entered the picture. They are a very well heeled (Arab money) company, Cypress based I believe, that has a track record of money making companies. They are also politically connected as shown by last year's deal in which they bought most of the government's share of the phone company and then resold it to Deutsche Telecom against the unions' strong objections.
Some of the companies with a local connection in which MIG owns large stakes are: Delta Dairy, Chipita chips, Goody's fast food, SingularLogic and our favourite Blue Star Ferries.
The dark cloud on the horizon is that the MIG chief executive met with the Socialist opposition and promised that if they won the next election (they are leading the polls) MIG would back out so that the airline could again be turned into a featherbed organization.
The executive, Andreas Vgenopoulos, is quoted:
"We want new planes, good service and an Olympic Airlines that will
make us all proud, and we will achieve this if the tender is complete."
He went on to say that the existing employees were the obligation of the government although they would create numerous jobs for new and existing employees.
Of course, Paros will lose its subsidized air service but I think it will be worth it to pay more for dependable schedules.
What do you think? Comments welcome.
- At February 18, 2009 4:09 AM Peter M said...
Greece needs more guys like Vgenopoulos...straight shooter, no BS.
Let's hope Olympic can be salvaged and it's restored to older glories (Onassis days).
- At March 24, 2009 12:21 PM TestKing said...
"Let's hope Olympic can be salvaged and it's restored to older glorie"
hope this will happen in near futhure