The European Commission has announced its decision to approve the acquisition of Olympic Air by Aegean Airlines.
The European Commission's decision was taken to support the absolute necessity of economies of scale to achieve viability within the Greek aviation market. The acquisition creates the conditions for the establishment of a sustainable Greek carrier, competitive within the region and capable of supporting growth which is expected to benefit Greek Tourism and the local economy.
Following EU approval, the acquisition of the shares of Olympic Air and the assumption of management by Aegean Airlines is expected to be completed by October 18, 2013. The total consideration for the transaction has been set at $97.6 million of which $27 million has already been paid. Upon the completion of the acquisition, Olympic Air will become a subsidiary of the listed Aegean, while the process of unification of the support functions will begin immediately. The two brands and logos of the companies will remain with each one, so as to retain distinct aircraft and flight activity.
Chairman, Aegean Airlines, Theodore Vassilakis commented: "As of today our obligation and commitment to serve our passengers and our country become even greater. While growing in size we also have to further improve our services to be more effective in the support of all Greek regions and ensure competitive access even to the smallest Greek island.
"The economies of scale will allow us to offer more competitive fares on our domestic network, especially for the small islands. At the same time, the synergies will allow us to support an improved growth rate for our international network, both from Athens and the periphery, contributing substantially to the development of Tourism and the Economy," said Vassilakis.
The acquisition is set to increase Aegean Airline's fleet from 30 to 45 and its personnel from 1480 to 2090. Furthermore air traffic is expected to increase from 6.5 million passengers to 8.4 million as well as raise Aegean Airlines's turnover from $854million to $1.1 billion.