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- IATA Code
- ICAO Code
- Corporate Address
- 31 Viltanioti St 14 Kifissia
- Main hub
- Athens International Airport
- Business model
- Full Service Carrier
- Joined Alliance
- Association Membership
- Codeshare Partners
- Brussels Airlines
Athens-based Aegean Airlines is a full-service airline, having a dominant domestic position in Greece and a growing presence in international scheduled routes between Greece and destinations in Europe and neighboring countries. Aegean offers its passengers premium services such as a dual-class cabin configuration, in-flight catering and reserved seating, through an extended domestic and international scheduled routes network. Aegean also operates seasonal charter flights to a significant number of Greek and international destinations. Aegean Airlines became a member of the Star Alliance in Jun-2010.
Location of Aegean Airlines main hub (Athens International Airport)
Aegean Airlines share price
242 total articles
16 total articles
This analysis updates CAPA's previous study of European airlines’ labour productivity ("European airlines’ labour productivity. Oxymoron for some, Vueling and Ryanair excel on costs") to reflect the most recent financial results and adds four carriers not included in the original article (Wizz Air, Aegean Airlines and the two IAG subsidiaries British Airways and Iberia).
The contrasting performance of LCCs and legacy carriers is clear, although there are some notable exceptions to the pattern. BA and Iberia’s different labour cost productivity is significant, while Air France-KLM and SAS are weak performers.
We introduce an overall CAPA European airline labour productivity ranking, revealing the carrier with Europe’s most productive workforce, based on six measures.
Aegean Airlines seems to be caught between the devil and the deep blue sea, challenged both by a very weak domestic market and by an increasingly competitive international market where it has neither cost leadership nor a global network. If approved by the EU this year, will its planned acquisition of Olympic Air provide a route to safety?
Aegean reported its third successive loss in 2012, albeit a narrower one than in 2011, as passenger numbers fell by 6%. Aegean managed to reduce costs at a similar rate and to limit the revenue fall to 2% by cutting domestic traffic and international traffic from Athens while growing international traffic from provincial Greek cities. Double digit passenger growth from 2003 to 2009 has been followed by domestic-led decline, with Athens (Aegean’s main hub, where it is the biggest carrier) a falling market. Although it has leading positions at its other Greek bases, LCCs are increasingly making their presence felt there.
For several years now the Greek Government has philosophically contemplated conceding its regional airports to the private sector, even of floating its share of Athens Airport via an IPO, but has been restrained by its indebtedness.
Just as Greece desperately needs help to reduce its massive deficit, its airports lack investor appeal for the same reasons, i.e. the negative effect on both in and outbound travel brought about by the sovereign debt crisis, ultra high unemployment, the possibility that the country may leave the European Monetary Union and even the breakdown of civil order.
Nevertheless it appears the government is finally to make an attempt at privatisation, by leasing 21 regional airports and with the tendering process starting immediately.
Greece’s largest passenger carrier, Aegean Airlines, has reached agreement with the shareholders of its main rival Olympic Air to buy the airline for EUR72 million, marking a third attempt to re-consolidate the Greek air transport market and survive in a dire – to say the least – environment as the country is in its fifth consecutive year of economic contraction. In contrast with the proposed union in 2010, which was blocked by the European Commission on competition grounds after a 10-month investigation, the present deal is not a merger but an outright acquisition of Olympic Air by Aegean. Olympic Air would become a subsidiary of Aegean, with both airlines maintaining their brands and distinct liveries.
The parties argue that the combination is necessary to effectively compete within the European aviation market and shield the two carriers against continued losses and further reductions of size and scope. Aegean posted a net loss of EUR27.2 million in 2011 and Olympic Air recorded a deficit of EUR37.6 million as its revenue and passenger numbers continued to decline. Olympic’s passenger numbers fell 23% in 2011 to 3.4 million from 4.4 million in 2010 and decreased 14.5% to 1.4 million in 1H2012 compared to the year-ago period.
Greece’s largest passenger carrier, Aegean Airlines, has continued to improve despite the economic crisis in Greece and other European countries, and has recorded a significant increase in international passenger traffic in 3Q2011. A rise in operating expenses, namely fuel, has negatively affected the carrier which posted a net loss of in the nine months to September.
Aegean’s expanded international network led revenue gains for the carrier with new destinations and increased frequencies in important markets across Europe. Aegean’s international network now accounts for more than half of the airline’s available seats. Meanwhile there is a weakening domestic market with capacity decreased in the face of reduced consumer demand.
Airlines on Europe's southern and eastern periphery are becoming more precariously positioned, but are looking for for partners to help overcome the growing financial crisis. Cyprus Airways is the latest such carrier, and reported a widening in first half losses in the six months to 30-Jun-2011, as lower top-line revenue fell and higher fuel costs squeezed the airline in the period. Cyprus Airways is also turning to implementing a raft of measures aimed at stemming operating losses.
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