Greece’s Aegean Airlines to buy rival Olympic Air
ATHENS (Reuters) Greece Aegean Airlines is making a fresh attempt to Canada Goose Online buy Olympic canada goose Air, this time for an agreed 72 million euros, in a bid to generate savings to Canada Goose Jackets cope with the country deep recession and create a stronger domestic competitor to foreign rivals.
The European Commission in 2011 blocked a previous attempt by the two airlines to merge on the grounds the combined company would dominate the domestic air market. However, both canada goose clearance sale firms have since seen their market shares shrink and made losses last year.
Greece economy is in its fifth year of recession as uk canada goose it drives through austerity measures to deal with a debt crisis that led canada goose factory sale to an international bailout. The country banks are Canada Goose online also consolidating buy canada goose jacket in an effort to cope with the cheap Canada Goose downturn.
Greece tourism industry accounts for around one in five jobs in the country and is crucial to its economic Canada Goose Parka recovery.
subscale size, combined with the effects of the canadian goose jacket unprecedented Greek crisis, restrict our ability to successfully compete within the European and global aviation buy canada goose jacket cheap market, Aegean canada goose uk shop Chairman Theodore Vassilakis said in a statement.
a result, we are faced with the immediate danger of Greek tourism, essential for the canada goose uk outlet country recovery, becoming entirely dependent on foreign carriers, he said.
Aegean, with a market value of about 121 million euros, expects to make canada goose store savings from the deal via improved buying power and the elimination of duplicate systems.
Its shares ended 2.9 percent higher in light volume.
Olympic Air will become a subsidiary of Aegean and the brand Canada Goose Coats On Sale names and logos of the two companies will be maintained and each will have distinct aircraft and flight staff, Aegean said.
Sources close to the two airlines had told Reuters earlier on Monday that Aegean was in advanced talks to buy Olympic.
Olympic fell into steady decline after being operated canada goose black friday sale for many decades by the Greek government and burdened the state budget with losses.
Aegean offered 170 million euros to buy the debt ridden Olympic when it was privatized in 2009, but lost out to MIG.
During their failed merger attempt in 2010 11, Aegean and Olympic offered to cede take off and landing slots in Greece, but the European Commission canada goose coats on sale ruled this was not enough as Greek airports did not suffer from the uk canada goose outlet levels of congestion affecting others in Europe.
Olympic and Aegean rejected suggestions of giving up cheap canada goose uk part of their fleet related site canada goose sale https://www.canadagooseparks.com or one of their two brand names to new entrants.
Aegean flies Canada Goose sale to 51 foreign destinations while Olympic only services seven routes abroad. Olympic flies more domestic routes.
Aegean had sales of canada goose clearance 668 million euros last year, almost three times the revenues of Olympic. It canada goose coats ended the year canada goose uk black friday with a net loss Canada Goose Outlet of 27.2 million euros. Olympic lost 37.6 million euros in 2011.