Olympic Airlines

Olympic Airlines was the Greek flag carrier and the successor to the country's earlier state-backed airline organizations. Its corporate identity began in 1957, when Greek shipping magnate Aristotle Onassis acquired the financially troubled national carrier and renamed it Olympic Airways. Under Onassis, the airline developed rapidly from a domestic operator into an international full-service airline, building a distinctive reputation for polished service, prominent branding and modern aircraft. It became one of Greece's best-known national institutions and connected Athens with cities across Europe, North America, Africa, the Middle East and Australia while also serving numerous Greek islands and regional destinations. The airline's history grew out of a fragmented Greek aviation market. Icarus, the Greek Company for Air Transport, T.A.E. and other operators had appeared during the 1930s and 1940s, but financial weakness led the state to consolidate the sector. TAE Greek National Airlines was formed in 1951, closed by the government in 1955 after further losses, and subsequently sold to Onassis. On 6 April 1957 it adopted the Olympic Airways name. Onassis used promotional introductory flights to encourage public confidence in commercial aviation and invested in jet technology. Olympic introduced de Havilland Comet 4B aircraft in 1960, later operated Boeing 707 and Boeing 727 jets, and established long-distance routes including Athens-New York, services to Africa and links to Canada and Australia. Cooperation with British European Airways produced an early codeshare arrangement. The company entered a new phase after the death of Onassis's son Alexander in 1973. Onassis sold his interest to the Greek state, which assumed ownership and management. Olympic continued to expand and modernize, adding Boeing 737s, Boeing 747s and Airbus aircraft, while creating or operating related businesses such as Olympic Aviation, Olympic Catering, Macedonian Airlines, fuel services and technical operations. It also maintained a substantial domestic network, including routes that were commercially difficult but strategically important for island communities. From the 1980s onward, Olympic faced persistent losses, labor disputes, management instability, political interference and a heavy debt burden. Reports of complimentary or deeply discounted travel for politicians and their families, along with discounted carriage of government press material, became symbols of the airline's governance problems. Restructuring programs, debt write-offs, external management and several privatization attempts did not restore sustainable profitability. The European Commission also challenged state support and required repayment of aid and other amounts, complicating efforts to sell or relaunch the company. A legal and corporate restructuring in 2003 transferred flight operations to a company renamed Olympic Airlines while other activities were reorganized under Olympic Airways–Services. A proposed privatization in 2004 failed, and later buyer approaches and the proposed Pantheon replacement carrier did not produce a durable solution. In March 2009, the Greek state agreed to sell the airline's flight operations, ground handling activities and technical base to Marfin Investment Group. Olympic Airlines stopped most operations on 29 September 2009, although it continued limited public-service island flights and selected non-European routes during a transition period. It finally ceased all operations on 31 December 2009. Olympic Air began operating as the successor company, while Aegean Airlines subsequently became Greece's principal flag carrier. From the 1980s onward, Olympic faced persistent losses, labor disputes, unstable management, political interference and a heavy debt burden. Reports of free or heavily discounted travel for politicians and their families and discounted carriage of government press material became emblematic of the airline's governance problems. Restructuring plans, debt relief, outside management and repeated privatization attempts failed to restore sustainable profitability. The European Commission also challenged state support and demanded repayment of aid and other sums, complicating efforts to sell or relaunch the company.

Olympic Airlines developed from a succession of Greek aviation companies established before and after the Second World War. Icarus appeared in 1930 but quickly failed, and the Greek Company for Air Transport followed. T.A.E., Greek Air Transport and Hellenic Air Transport were operating in the late 1940s. Their weak finances led the government to merge the sector into TAE Greek National Airlines in 1951. That carrier was closed in 1955, bought back by the state and then transferred to Aristotle Onassis in 1956. On 6 April 1957, the airline was renamed Olympic Airways. Onassis invested in aircraft, service presentation and public promotion. Introductory free flights helped familiarize Greek passengers with air travel, while the arrival of de Havilland Comet 4B aircraft in 1960 made Olympic one of the early Greek jet operators. The airline later acquired Boeing 707s and opened a nonstop Athens-New York service, added Boeing 727s, and expanded to Africa, Canada and the United States. Its cooperation with British European Airways included coordinated aircraft and crew operations and an early codeshare-style arrangement. The carrier's high-profile service culture included designer uniforms, formal dining and an emphasis on luxury. Olympic also maintained a significant domestic role. In 1971 it acquired NAMC YS-11 aircraft and established Olympic Aviation to serve Greek islands and smaller airports more economically. Short Skyvans were used on routes with limited infrastructure. The group subsequently operated Boeing 720s, Boeing 747s, Boeing 737s and Airbus A300 and A340 aircraft. It created associated businesses in catering, tourism, fuel, maintenance, ground handling and charter operations. After Alexander Onassis died in 1973, Aristotle Onassis sold the airline to the Greek state. State ownership brought continued network importance but also exposed the company to political and managerial pressures. Olympic withdrew from Australia and Canada during cost-cutting efforts in the late 1970s, later reopening those markets. The 1980s brought strikes, mounting losses and criticism of politically influenced travel and discounted government-related carriage. Attempts to improve performance included debt restructuring, management changes and a period of outside management by British Airways-associated Speedwing International. During the 1990s the airline continued to modernize, but ambitious long-haul projects did not consistently produce profits. A Tokyo service was discontinued despite high reported load factors, and Airbus A340 aircraft were acquired in 1999 to replace older Boeing 747s. By the early 2000s the group had become financially and organizationally complex. In 2003, flight operations were moved to a company renamed Olympic Airlines, while remaining operating companies were combined as Olympic Airways–Services. The government attempted privatization in 2004 and again entertained bids and replacement-carrier plans, including the proposed Pantheon Airways project, but no solution overcame the debt, state-aid and restructuring issues. The state and European Commission agreed on a winding-down process in 2009. Marfin Investment Group acquired key operating assets, and Olympic Air was created as the successor airline. Olympic Airlines continued limited services during the transition, using the temporary OP code and, in the final period, relying on Olympic Air wet-leased operations. It ceased all activity on 31 December 2009. Olympic Air retained the Olympic name, while Aegean Airlines ultimately became Greece's principal flag carrier.

• 2009

  Operations transferred and airline closed

  [1]Olympic Airlinesen.wikipedia.org

  Marfin Investment Group acquired key operations; Olympic Airlines ended most flights in September and shut down completely on 31 December.

• 2007

  Electronic ticketing introduced

  [1]Olympic Airlinesen.wikipedia.org

  Olympic launched an e-ticketing service and began replacing its long-standing reservation system.

• 2003

  Corporate restructuring creates Olympic Airlines

  [1]Olympic Airlinesen.wikipedia.org

  Flight operations were transferred to Macedonian Airlines, which was renamed Olympic Airlines, while other group activities were reorganized.

• 1973

  Return to state ownership

  [1]Olympic Airlinesen.wikipedia.org

  Following the death of Alexander Onassis, Aristotle Onassis sold his Olympic Airways shares to the Greek state.

• 1971

  Olympic Aviation established

  [1]Olympic Airlinesen.wikipedia.org

  A subsidiary was created to operate smaller domestic and island routes.

• 1966

  Boeing 707 service begins

  [1]Olympic Airlinesen.wikipedia.org

  Olympic received its first Boeing 707 and inaugurated nonstop Athens-New York service.

• 1960

  Jet era begins with Comet 4B

  [1]Olympic Airlinesen.wikipedia.org

  Olympic introduced de Havilland Comet 4B aircraft, establishing its early jet-era identity.

• 1957

  Olympic Airways name introduced

  [1]Olympic Airlinesen.wikipedia.org

  The company adopted the Olympic Airways name on 6 April.

• 1956

  Aristotle Onassis acquires the national airline

  [1]Olympic Airlinesen.wikipedia.org

  The Greek state reached an agreement for shipping magnate Aristotle Onassis to purchase the airline.

• 1951

  Formation of TAE Greek National Airlines

  [1]Olympic Airlinesen.wikipedia.org

  The Greek state consolidated several financially weak carriers into TAE Greek National Airlines, a predecessor of Olympic Airways.

Greek national flag carrier and full-service airline combining an extensive domestic island network with long-haul international operations.

• Passenger aviation · 1957

  Domestic passenger network

  Olympic's domestic network connected Athens with major Greek cities, islands and smaller regional airports. Olympic Aviation and later Olympic Airlines operated routes that were commercially and socially important for geographically dispersed island communities.

• Passenger aviation · 1957

  International passenger services

  The airline provided scheduled international service from Greece to European destinations and longer-distance markets in North America, Africa, the Middle East and Australia. Its long-haul fleet included Boeing 707, Boeing 747 and Airbus A340 aircraft.

• Regional aviation · 1971

  Olympic Aviation

  Established in 1971, Olympic Aviation focused on island and regional routes using smaller turboprop and utility aircraft, including NAMC YS-11 and Short Skyvan aircraft.

• Aviation services

  Cargo and group support services

  The wider Olympic group operated or planned cargo, catering, fuel, ground-handling, maintenance, travel-ticketing and technical-base activities. A proposed dedicated cargo division was not sustained as a major standalone business.

• 2005

  Illegal state-aid findings

  The European Commission determined that significant state aid connected with Olympic Airlines was unlawful and required repayment, creating a major obstacle to privatization and restructuring.

  Source

• 1980

  Political influence and preferential travel criticism

  Olympic was repeatedly criticized for governance practices associated with state ownership, including reported free or heavily discounted travel for politicians and their families and sharply discounted carriage of government press material. These practices were cited alongside management problems and labor disputes as contributors to its financial deterioration.

  Source

Read more

• 1957Aviation Days of 1957

  Greece

  To build confidence in air travel, the new Olympic Airways offered short introductory flights in Douglas DC-3 aircraft. The promotion presented commercial aviation as reliable and accessible to the Greek public.

  Outcome. Helped familiarize Greek consumers with scheduled air travel.

  Source

• 2009

  Sale of operating assets and creation of Olympic AirM&A

  Background

  Repeated privatization and restructuring attempts had failed amid debt, state-aid and European regulatory issues.

  Action taken

  The Greek state agreed to transfer flight operations, ground handling and the technical base to Marfin Investment Group and established Olympic Air as the successor carrier.

  Aftermath

  Olympic Airlines ceased most operations in September and completed its shutdown on 31 December 2009. Olympic Air continued the brand presence and later became part of Aegean Airlines.

  Source

• 2007

  Introduction of electronic ticketingOther

  Background

  Online booking and check-in were becoming standard in the airline industry.

  Action taken

  Olympic launched electronic ticketing and began replacing its legacy Hermes reservation system.

  Aftermath

  The service was progressively extended across international and domestic routes before the airline's closure.

  Source

• 2003

  Transfer of flight operations to a restructured companyStrategy

  Background

  The Olympic group had accumulated substantial losses and debt, making the existing corporate structure difficult to sustain.

  Action taken

  Macedonian Airlines was renamed Olympic Airlines and took over flight operations, while other group companies were reorganized under Olympic Airways–Services.

  Aftermath

  The restructuring separated operating activities but did not produce a lasting resolution of the debt and state-aid disputes.

  Source

• 1977

  Long-haul cost reductionStrategy

  Background

  The state-owned airline faced increasing financial pressure and sought to reduce its international cost base.

  Action taken

  Olympic suspended its Australian route and later withdrew from Canada, although both markets were eventually reopened.

  Aftermath

  The withdrawals reduced network breadth but did not resolve the airline's structural financial problems.

  Source

1. 1Olympic Airlinesen.wikipedia.org