Olympic and Aegean to merge

Amid Greece's huge public deficit - including strikes in the public sector (and Union of Greek Air Traffic controllers) this week - Olympic Air and Aegean Airlines have announced their intentions to consolidate.

The two airlines together have 97% of the Greek domestic air travel market and according to Aegean's press statement, Olympic Handling and Olympic Engineering will become 100% subsidiaries of the new company (which is still subject to final regulatory approval).

The company will carry the name and logos of Olympic air and, after a transition period, will include the Aegean logo as well, the statement also said.

Mr Vassilakis, Aegean's chairman, explained: "The relative size of our competitors within the European Union necessitates the joining of the two main Greek airlines, to achieve increased autonomy in serving the needs of our country’s tourism, increase route options for consumers, ensure the long-term development and viability of the two airlines and protect the levels of employment in the sector.”

Routesonline will publish full analysis on the merger and what it means for Greece in the Hub newsletter next week*.

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