Aegean Airlines Merger
In 2010, Aegean Airlines, the leading Greek airline, underwent a significant merger with another Greek airline, Olympic Air. The merger marked a significant milestone for the Greek aviation industry and represented a strategic move for Aegean Airlines to expand its operations and strengthen its presence in the Greek market.
Background: Aegean Airlines and Greek Market
Aegean Airlines was founded in 1987 and quickly became the largest airline in Greece, serving over 150 destinations worldwide. The airline’s primary focus was on the Greek market, offering flights to and from all major Greek cities and islands. The Greek market was a challenging one, with a fragmented aviation industry, high operating costs, and intense competition from low-cost carriers.
The Need for a Merger
The Greek aviation industry was facing significant challenges in the late 2000s. The global financial crisis had hit the country hard, and the aviation industry was not immune to its effects. Aegean Airlines was facing intense competition from low-cost carriers and was struggling to maintain its market share. The airline realized that it needed to expand its operations and strengthen its presence in the Greek market to stay competitive.
The Search for the Perfect Partner
Aegean Airlines considered several options for expansion, including organic growth, acquisitions, and mergers. After careful consideration, the airline decided that a merger with another Greek airline would be the best option. The airline set its sights on Olympic Air, the second-largest airline in Greece, as the perfect partner.
The Merger with Olympic Air
In October 2010, Aegean Airlines announced that it had reached an agreement to acquire Olympic Air. The merger was subject to approval by the European Commission and the Greek Competition Commission, which was granted in 2013. The merger created a new entity, named Aegean-Olympic Air, which became the largest Greek airline, with a market share of over 90%.
The Legal and Regulatory Process
The Aegean Airlines-Olympic Air merger was a complex process that required approval from several regulatory bodies. The European Commission was responsible for ensuring that the merger did not violate EU competition laws, while the Greek Competition Commission was responsible for ensuring that the merger did not harm competition in the Greek market.
The Benefits of the Merger
The merger between Aegean Airlines and Olympic Air created significant benefits for both airlines. The new entity had a larger network, improved operational efficiency, and increased bargaining power with suppliers. The merger also allowed the airlines to reduce costs, which enabled them to offer competitive pricing and improve customer service.
The Impact on the Greek Aviation Industry
The merger between Aegean Airlines and Olympic Air had a significant impact on the Greek aviation industry. The new entity became the dominant player in the Greek market, which led to a reduction in competition. However, the merger also created opportunities for the new entity to expand its operations and improve the quality of service to customers.
The Impact on Aegean Airlines’ Operations
The merger enabled Aegean Airlines to expand its operations and increase its market share in the Greek market. The airline was also able to reduce costs and improve its operational efficiency, which allowed it to offer competitive pricing and improve customer service.
The Impact on Olympic Air’s Operations
The merger created significant benefits for Olympic Air, which was facing financial difficulties at the time. The merger allowed the airline to reduce costs, improve its operational efficiency, and gain access to a larger network of destinations. This enabled Olympic Air to improve its financial performance and maintain its position in the Greek market.
The Future of the Merged Airlines
The merger between Aegean Airlines and Olympic Air has created a strong and competitive airline that is well-positioned to succeed in the Greek market. The new entity has a larger network, improved operational efficiency, and increased bargaining power with suppliers. The airline is expected to continue to expand its operations and improve its customer service.
Conclusion: Aegean Airlines’ Successful Merger
The merger between Aegean Airlines and Olympic Air was a significant milestone for the Greek aviation industry. The new entity created by the merger became the dominant player in the Greek market, offering customers a larger network, improved operational efficiency, and competitive pricing. The merger has enabled Aegean Airlines to strengthen its position in the Greek market and expand its operations, making it a successful strategic move for the airline.
