Issue No. 13369

 

MARFIN Investment Group (MIG) will earn back its almost 1 million euro total investment in Olympic Air (OA) in just two years, says Antonis Simigdalas, the airline’s chief executive officer. In a written interview with the Athens News, he also reveals his views on the industry, OA’s reaction to losing subsidised domestic routes and gives his top tips for running a successful airline business.

 

Antonis Simigdalas: Well, we now offer around 190 flights per day, serving a network of 51 destinations  - 17 international and 34 domestic. Most importantly, they all run on time and with safety as our top priority. We also offer international connections by cooperating either through code-share agreements or through SPAs (Special Pricing Agreements) with major international airlines such as Delta Airlines, Air France/KLM, Etihad Airways, Cyprus Airways and others. 

 

Were you disappointed at not winning the tender for the remote domestic routes? 

 

We flew the PSO (subsidised) routes between September 29 and November 30 without even one cent of subsidisation. For us, not flying the PSO routes at zero subsidy - as we had proposed for 16 out of 24 subsidised routes initially - would, at best, produce a very small net return. However, the transport ministry elected to assign 15 out of the 16 routes - which we were proposing to serve for free - to other operators, at a cost of about 2.5 million euros for the next 4 months. We fail to understand this logic, especially at times of financial strain like the present.

 

What has the takeup of offers and scheduled flights been? And what further special offers can we expect? 

 

Market response to our new product and services has been good so far. We continue to offer competitive prices combined with excellent service and we take seriously into account the feedback from our customers in order to keep improving. Special offers are now in effect through our website, www.olympicair.com and, of course, through our frequent-flyer scheme, the Travel Air Club programme. 

 

 

Everyone has been positive. As you know, the new logos were designed through public participation and so we consider the brand not as our own, but as the intellectual property of all Greek people, as well as everyone around the world to whom the name Olympic means something. 

 

 

 

You are right, it is a huge investment, but it is one which is already paying good returns, judging by the sentiments and feelings of everyone who hears about us or flies on our aircraft. It is also the basis of significant synergies with the other, very successful companies of MIG. 

 

Based on our expectations, we could be breaking even as early as 2011, which will effectively be the second year of operations for us. Of course this is based on a number of assumptions regarding wider economic forecasts, such as total airline traffic development in Europe and in Greece, as well the overall economic conditions. But I firmly believe that we shall be the air carrier of choice for anyone travelling within Greece or to and from Greece. 

 

Unfortunately, in the past 5-10 years the airline industry has been in the sights of a variety of influential groups that have successfully exerted pressure on the regulator, the European Commission. This has led to additional costs and unsubstantiated demands, which are causing the price of air travel to soar unnecessarily. If this situation continues, in conjunction with the worldwide economic crisis, you can rest assured the cost of air travel will go up. The more this happens, the less air traffic there will be - especially in the short to medium haul. But a crisis always helps to rationalise everything, provided you are in a position to take advantage of such conditions.

 

 

 

We are busy exploring new frequencies on existing routes to optimise our network, new routes, new fleet shape - everything is currently under enthusiastic consideration. As for our fleet, we believe that it constitutes the best combination of jet and prop fleet mix possible for the specific characteristics of our market and route network. 

 

 

The 35 percent obligatory route reduction is actually already over. However, to restart such routes, especially long-haul ones, one should be extremely careful and plan in much detail, as mistakes in these cases usually are catastrophic. We have every intention of expanding, but not at the expense of reason.

 

 

We are in very close discussions with a number of major international carriers, with whom we share significant strategic directions - namely Delta Airlines, Air France/KLM, Etihad Airways and Cyprus Airways. Within that context, there are a number of new routes which we are evaluating and considering for our future expansion. At this stage, our main goal is to establish Olympic Air as the carrier of choice for the Greek, eastern Mediterranean and European markets. 

 

 

The secret lies in persistence, patience, decisiveness, leadership by example and open-mindedness, delegation and the ability and willingness to share success when it comes, but also undertake all responsibility for whatever fails. 

 

 

There is not a lot free time lately, but my activities are mainly related to the wind and air. I like to fly my 1954-built antique Piper Super Cub. I sometimes fly gliders, as I have done since I was 16 years old and, whenever I get the chance, quietly sail in the Greek seas. 

 

ATHENS NEWS 30/08/2010, page: 24