Announcement

AEGEAN AIRLINES and its shareholders state in a very clear way that are not interested in purchasing any asset or flying activities of Olympic Airways Group. Aegean Airlines states once more that it will support any transformation provided it complies with Greek and European Union legislation concerning competition and state subsidies.

AEGEAN AIRLINES has never been subsidized by Greek State. On the contrary, the Greek State has, for six years now, been illegally subsidizing the state owned Greek carrier, with hundreds of million of euros, as European Court found in its judgment of 12 May 2005 and as certified by the European Commission on 14th September 2005. It is unfair for Aegean Airlines to pay airport development and other airport taxes, as well income tax and social security contribution and the state owned carrier does not pay any of these, continuously debiting with millions of euros the Greek taxpayers. It is worth noting that 82 per cent of Greek inhabitants do not use airline transportation.

It is worth noting that AEGEAN AIRLINES in six years of its operations:

• Is one of the biggest investments in Greece, with its shareholders having contributed more than 150 million US Dollars in own capital. Aegean started its operation in 1999 owning 6 brand new jet aircraft. Recently Aegean placed a $420 million order for eight Airbus A320 jets with an option for another 12 Airbus jets of the same family in order to renew its fleet.


• Has created 1.600 new jobs. In addition, has created 800 new positions as part of its ground handling company. Aegean has hired a total of 2.400 employees.


• Carries 4 million passengers per year (3 million passengers on the domestic network and 1 million on international flights). Aegean achieves more than 50% market share of the domestic passenger traffic.


• With its Charter Operations has become a bridge connecting European cities to Greek tourist destinations, contributing to the development of Greek tourism.


• Is the only Greek carrier honored twice by European Regions Airline Association. In September 2004, it was voted by ERA Airline of the Year 2004/5.


• Aegean played a key role in assisting Hellenic Civil Aviation Authority upgrade from category 2 to category 1 during a check conducted by the US FAA as it excelled in the check it undertook.


• In March 2005, Aegean Airlines was selected by Lufthansa as regional partner for code share flights beginning on 31/10/05. As such, Aegean Airlines is the only Greek carrier that has been able to participate in an international partnership.


• Despite the prevailing negative international circumstances and the adverse local competitive conditions Aegean Airlines, for three years now, has been reporting profits on a consistent basis.


• By offering fares starting as low as 29 euros for domestic flights and 59 euros for international flights, Aegean Airlines is helping in the effort to keep fares affordable for both domestically and internationally.


• Is the most dynamic airline in Greece growing at an average of 20% for each of the last five years. For three years now, Aegean has contributed 55 percent of the passenger growth in the new Athens International Airport (AIA), making Aegean the dominant traffic development force in Athens.


• Aegean Airlines as well as its President have been recognized from the Flight Safety Foundation and the Greek Authorities for their commitment to ongoing efforts to continuously improve aviation safety.

AEGEAN AIRLINES simply asks, six years now, to be able to operate in an environment where each company and its employees will have equal opportunities to develop and serve their passengers.

If the Greek State believes that there is a national need to subsidize certain services, then it should subsidize equally all airlines based on the services they provide and not just one (besides the existing public service obligation).

AEGEAN AIRLINES wishes to thank one more time all of its customers that have supported its operation and continue to do so. We assure you that we will continue providing services with the Respect and Quality you deserve.