A New Olympic - We Hope
As I write this each day brings something new to Greece's multi-year effort to upgrade Olympic Airlines.
This week we finally have some good news.
First the bad news, several 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.
I have written elsewhere about my own personal horror story with their frequent cancellations of flights..
Recently it was announced that the Marfin Investment Group has entered the picture and have successfully bid for the entire package of flight and ground operations.
They are a very well heeled (Arab oil 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 feather-bed 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.
This week we finally have some good news.
First the bad news, several 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.
I have written elsewhere about my own personal horror story with their frequent cancellations of flights..
Recently it was announced that the Marfin Investment Group has entered the picture and have successfully bid for the entire package of flight and ground operations.
They are a very well heeled (Arab oil 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 feather-bed 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.
Source...