Aegean Airlines submits its own bid to the Greek State regarding the privatisation of Olympic Airlines’ operations

Responding to the open public invitation to Greek business groups by the Interministerial Privatisation Committee for the submission of bids on the privatisation of Olympic Airlines, AEGEAN AIRLINES submitted a bid today to the Greek State for the acquisition of:

a) the assets relating to Olympic Airlines’ flying operations in return for 90 million euros (double the minimum valuation by the Greek State's advisors); and
b) the technical base assets in return for 20 million euros.
At the same time, it has also offered to acquire Pantheon at the net value of its shareholders’ funds, estimated at 60 million euros.

AEGEAN and its shareholders aim to create a stronger Greek airline with the necessary critical size that will provide it with brighter prospects against the international competition within the Single European Sky.

If our bid is accepted by the Greek State, we are willing to concede part of our domestic operations to third parties so that the existing competition will be further intensified in the domestic market, which was recently entered by new players. Of course, submitting a proposal for the servicing of marginal routes remains an obligation of our company.

AEGEAN promises to adhere to the agreement and to undertake the project within a period of 60 days from the signing of the final agreement with the Greek State. This will result in the prevention of losses worth hundreds of millions of euros, which the Greek State would incur if the project and the ownership of Olympic Airlines were undertaken by another entity at a later time.

The recent series of mergers, acquisitions and privatisations in the European airline sector and the resulting particularly strong structures make this move imperative if we are to ensure the significant, high-quality, viable and independent servicing of Greece and of its tourism needs in this sector in the long term. It is indicative of the situation that in international traffic, which makes up 80% of all traffic in the 38 Greek airports, the two main Greek airlines jointly represent just 17%, when the corresponding percentage for the main carrier of most European countries is more than double this figure.

The recent privatisation of Alitalia and its merger with Air One, a development which was followed by the participation of Air France in that particular structure, the acquisition of the Belgian company SN Brussels (formerly Sabena) by Lufthansa, the expected merger of British Airways with Iberia and the ongoing acquisition of Austrian Airlines by Lufthansa are clear indicators of the advantages offered by the creation of a stronger Greek enterprise.

We consider that the needs of Greek tourism and of the Greek economy and the expectations of our 70,000 Greek shareholders would be optimally met through the creation of a large Greek airline with the current AEGEAN AIRLINES at its core. With its advanced know-how, the youngest fleet in our region, its exceptional personnel, its participation in international alliances, a strong capital structure, a successful background in the industry, the recognition enjoyed both in Greece and abroad, combined with the history and the weight carried by the “Olympic” brand, the new Greek airline can be a true national champion.

Aegean Airlines is the most rapidly growing airline in Greece, having served 6 million passengers in 2008. It is listed in the Athens Stock Exchange and its 70,000 Greek shareholders include 6 major Greek business groups.
Aegean is making the biggest investments in the Greek air transport industry, amounting to 1.2 billion US dollars, renewing its fleet with brand new Airbus A320/A321 aircrafts, and thus having the youngest fleet in South-Eastern Europe. It has created 2,300 new jobs and in the summer of 2009 it will be carrying out 200 flights per day on 47 domestic and international routes, as well as another 50 charter flights.