GUS VLASSIS / ATHENS
The privatisation of Greek carrier Olympic Airways faces yet another delay, following the decision by advisors Credit Suisse First Boston to recommend re-opening the bidding to a second investor. Exclusive negotiations with privately-owned Axon Airlines, due to have reached a conclusion on 16 November, will stop, and negotiations will start with Australia's Integrated Airlines Solutions (IAS).
Attempts by the government to offload a controlling stake in the debt-laden carrier have been marked by continuous delays. A bidding process launched in February failed, and under a renewed effort launched in June, Axon was selected as the preferred bidder. But deadlines for closing the deal have come and gone as the business climate for the airline industry has deteriorated.
The Greek transport and communications minister, Chris Verelis, recently fuelled speculation that the privatisation would be delayed again by suggesting that Axon needed additional financial muscle for its bid. Axon owes 500 million drachmas ($1.3 million) to Olympic in handling charges, according to the transport ministry.
IAS has maintained contacts with the government since its first bid in June. It is backed by two prominent Greek businessmen - Paul Varidinogiannis, a member of the country's richest family with significant interests in shipping and distilling, and Kostantin Angelopoulos, the owner of a Greek steelworks.
Time is not on Olympic's side. Saddled with 25 billion drachmas of debt, it must repay $68 million by 12 December or return six Boeing 737-400s to lessors, according to the transport and communications ministry.
Source: Flight International
