4. Airline restructuring
CEO, Olympic Airways Group
Under my leadership, OA returned to profitability for the first time since it came under state control and achieved highest traffic and revenue levels in its history.
Developed €2.0 bil Recapitalization, Restructuring and Turnaround plan.
debt rescheduling of €1.5 bil
-debt to equity conversion of € 0.25 bil
-fresh capital injection of € 0.25 bil
Reduced payroll expenses by 30%, negotiating successfully with 19 unions:
-headcount reductions,
The measures taken to restructure the company are bearing fruits already”,
Air Transport World, Jun1996.
-salary freezes and
-work rules concessions.
Instituted a complete and thorough organizational restructuring, established new corporate structure, work processes, functions, and accountability.
Established operational efficiencies and work process improvements resulting in cost savings of 25% ($ 55 mil).
Implemented €400 mil new fleet plan, reducing fleet multiplicity and optimizing fleet mix (long haul wide body / short haul twin / interisland turboprop).
Eliminated unprofitable routes (including sacred cows), revamped schedules, overhauled network focusing on performing markets, implemented revenue management and pricing, overhauled sales and distribution practices.
Repositioned airline to establish dominance in Central & Eastern Europe. Inaugurated 4 new markets and code-shared on additional 2.
Implemented commercial partnerships with TAP, Balkan, Malev, Tarom, Swissair, and VASP.
Commercial initiatives resulted in record KPI levels and profitability first time ever.
Won Greek parliament and European Commission approval for restructuring plan.
Negotiated with Competition Directorate of European Commission to preserve OA ground handling monopoly and extend it longer than predicted, thus protecting revenue and profitability while gaining time to prepare for market liberalization.
As CEO, I implemented the most dramatic corporate transformation of the OA group: span-off departments or divisions into subsidiaries, enhancing corporate value and preparing for privatization or strategic partnerships.
Established dedicated Charter subsidiary (Macedonian airlines) with its own P/L, endowing it with OA aircraft, thus stopping cannibalization of OA scheduled product. Charter revenues grew from €8 to €43 mil in 3 years, with EBIT of 15.5%.
“Olympic is,on admittedly narrow criteria, the success story among Europe’s state aided carriers”
Aviation Strategy, 1997
Span off catering into independent subsidiary (OA Catering), enhanced business model by expanding its activities to non-airline sectors (ferries, trains, industrial catering) and prepared it for privatization and successful IPO with a market cap of $44mil (of which $30.1 mil was OA stake)
Ground Services was also span-off into subsidiary selling handling services to OA as well as to third parties, generating revenues of €320 mil with op. margin of 35%.
Revitalized a sleepy “incoming traffic” dept, turning it from cost center into a profit center; Olympic Touristic, s.a., produced and wholesaled own packages, generating revenues of millions for the first time ever. Structured a global partnership with American Express.
Set up a GDS subsidiary, Galileo Hellas, and attracted investment by Galileo international. Negotiated terms of JV and shareholder agreement. Developed new revenue lines distributing for ferries and trains, generating revenues of $24 mil/year.
Set up Olympic Fuel Co (OFC) as JV with Oil Hellas SA, Avin Oil SA, Skytanking NV and Hansaconsult GmbH to bid for the B.O.T. (Build- Operate- Transfer) concession of the Hydrant Refuelling System at Athens International airport Awarded following an international tender. Shares sold back during privatization.
Established Olympic-into-plane Company (OIC), which won one of two concessions to provide fuel handling services at Athens International airport.
CEO, Olympic Airways Group
Under my leadership, OA returned to profitability for the first time since it came under state control and achieved highest traffic and revenue levels in its history.
Developed €2.0 bil Recapitalization, Restructuring and Turnaround plan.
debt rescheduling of €1.5 bil
-debt to equity conversion of € 0.25 bil
-fresh capital injection of € 0.25 bil
Reduced payroll expenses by 30%, negotiating successfully with 19 unions:
-headcount reductions,
The measures taken to restructure the company are bearing fruits already”,
Air Transport World, Jun1996.
-salary freezes and
-work rules concessions.
Instituted a complete and thorough organizational restructuring, established new corporate structure, work processes, functions, and accountability.
Established operational efficiencies and work process improvements resulting in cost savings of 25% ($ 55 mil).
Implemented €400 mil new fleet plan, reducing fleet multiplicity and optimizing fleet mix (long haul wide body / short haul twin / interisland turboprop).
Eliminated unprofitable routes (including sacred cows), revamped schedules, overhauled network focusing on performing markets, implemented revenue management and pricing, overhauled sales and distribution practices.
Repositioned airline to establish dominance in Central & Eastern Europe. Inaugurated 4 new markets and code-shared on additional 2.
Implemented commercial partnerships with TAP, Balkan, Malev, Tarom, Swissair, and VASP.
Commercial initiatives resulted in record KPI levels and profitability first time ever.
Won Greek parliament and European Commission approval for restructuring plan.
Negotiated with Competition Directorate of European Commission to preserve OA ground handling monopoly and extend it longer than predicted, thus protecting revenue and profitability while gaining time to prepare for market liberalization.
As CEO, I implemented the most dramatic corporate transformation of the OA group: span-off departments or divisions into subsidiaries, enhancing corporate value and preparing for privatization or strategic partnerships.
Established dedicated Charter subsidiary (Macedonian airlines) with its own P/L, endowing it with OA aircraft, thus stopping cannibalization of OA scheduled product. Charter revenues grew from €8 to €43 mil in 3 years, with EBIT of 15.5%.
“Olympic is,on admittedly narrow criteria, the success story among Europe’s state aided carriers”
Aviation Strategy, 1997
Span off catering into independent subsidiary (OA Catering), enhanced business model by expanding its activities to non-airline sectors (ferries, trains, industrial catering) and prepared it for privatization and successful IPO with a market cap of $44mil (of which $30.1 mil was OA stake)
Ground Services was also span-off into subsidiary selling handling services to OA as well as to third parties, generating revenues of €320 mil with op. margin of 35%.
Revitalized a sleepy “incoming traffic” dept, turning it from cost center into a profit center; Olympic Touristic, s.a., produced and wholesaled own packages, generating revenues of millions for the first time ever. Structured a global partnership with American Express.
Set up a GDS subsidiary, Galileo Hellas, and attracted investment by Galileo international. Negotiated terms of JV and shareholder agreement. Developed new revenue lines distributing for ferries and trains, generating revenues of $24 mil/year.
Set up Olympic Fuel Co (OFC) as JV with Oil Hellas SA, Avin Oil SA, Skytanking NV and Hansaconsult GmbH to bid for the B.O.T. (Build- Operate- Transfer) concession of the Hydrant Refuelling System at Athens International airport Awarded following an international tender. Shares sold back during privatization.
Established Olympic-into-plane Company (OIC), which won one of two concessions to provide fuel handling services at Athens International airport.
7 . Airline M&A transaction advisory and implementation
Managing Director, Airline investments
Olympic Investors, LLC was formed to acquire Olympic Airways from the Greek government and manage it as a private airline.
· Developed the business plan and the acquisition plan
· Convinced private equity funds, Apax partners and York capital, to back acquisition
· Directed valuation, bid preparation, and led negotiations
· In 2003, backed by Apax partners, won tender-suspended due to elections
· In 2004, backed by York capital, submitted winning bid of €125mil, executed SPA – Greek government backed out at last minute.
Participated in other airline privatizations:
· Cyprus Air-directed negotiations with government, which backed out.
· Bulgaria Air -submitted unsuccessful bid.
· Malev Hungarian airlines-prequalified for acquisition but decided not to bid after completing due diligence
· Buy-side advisor to York capital in its investment in SkyEurope Airlines, through an SPO
Managing Director, Airline investments
Olympic Investors, LLC was formed to acquire Olympic Airways from the Greek government and manage it as a private airline.
· Developed the business plan and the acquisition plan
· Convinced private equity funds, Apax partners and York capital, to back acquisition
· Directed valuation, bid preparation, and led negotiations
· In 2003, backed by Apax partners, won tender-suspended due to elections
· In 2004, backed by York capital, submitted winning bid of €125mil, executed SPA – Greek government backed out at last minute.
Participated in other airline privatizations:
· Cyprus Air-directed negotiations with government, which backed out.
· Bulgaria Air -submitted unsuccessful bid.
· Malev Hungarian airlines-prequalified for acquisition but decided not to bid after completing due diligence
· Buy-side advisor to York capital in its investment in SkyEurope Airlines, through an SPO