In Inside Traveller we pointed out how ridiculous it was for the EU to ban the proposed merger between Aegean and Olympic on competition grounds. It is not as if Greece has a queue of new airlines wanting to take over slots or routes and there is no way the small country could support two airlines competing over the same routes. Without a merger, we would have expected Olympic to go out of business sooner or later. Allowing a deal would have meant the two could have got together in an orderly fashion, with staff and creditors protected and any necessary safeguards put in place to ensure the consumer would not be adversely affected. The EU decision showed them to be hopelessly out of touch and lost in a world of competition theory which ignores the practicalities of real business.
Olympic has been losing money heavily since its re-birth and now has to make serious cuts to its services. They have cancelled their London route, amongst others, and between three and six of their Airbus aircraft are being leased out.
At the same time, Aegean is increasing its services to London and starting a new route from Heathrow to Larnaca using the slots freed by Olympic. To support their growth, they need new aircraft and guess where these will come from?
The first of three Olympic Airbuses is currently at Norwich being repainted into Aegean livery ready for the summer season.
So, Brussels gets its way. And the merger, in all but name, will go ahead. Another triumph for the Eurocrats.