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Aegean Airlines “fights” with its limits

The internal market has created two mega – Gladiators. Aegean Airlines and Ryanair with the Hellenic company to slightly exceed 52% and Ryanair being at 47%, with small portions for Elinnair of the Mouzenizis Group.

During 2016 the Hellenic monopolistic Aviation group of Aegean, attached with Olympic, which was delivered by MIG without a fight, is indeed engaging in business “maneuvers” in a highly competitive International Aviation field.

New aircraft were ordered, as announced in October 2015, with a fleet exceeding 60 aircraft, and targeting more than 16,0 million passengers.

It aims to 145 destinations in total and 6-7 new countries to venture.

Tehran has been an important step, but the only 3 flights per week appear to be somewhat unpractical for businessmen, which is why the revocation of the US countermeasures, the flights should be increased to at least 5 per week.

Competition abroad with AirFrance / KLM and British, especially regarding London, gives it a second carrier share of about 30%, with British being first with 34%.

At the same time we should count Germany, where the common codes with Lufthansa provide an added advantage of excellent profitability.

Furthermore, its aggressive media advertising policy, with discount offers of every type, positively promotes the company’s product.

The future of the game that is played internationally, with the price of oil at (-30) USD, and maybe 25 USD per barrel, with sustained downward trends, supports Aegean’s advantage.

And all the above maintain the Company’s stock in an enviable stability, amid a continually plummeting Hellenic stock market. Indeed, the prediction for increased annual turnover in 2016, reaching 1 billion euros, gives hope for net profit over 70 million euros.

Especially with regards to London, where the prophetic change of airport, with Heathrow taking the lead, skyrocketed the average occupancy at (+81%), while reducing the per seat cost, as assisted by other abatement factors, ie. Fuel, flights frequency, total number of passengers arriving in 2015 to 1.2 mil. approximately.

Meanwhile, the internal market has created two mega – Gladiators. Aegean Airlines and Ryanair with the Hellenic company to slightly exceed 52% and Ryanair being at 47%, with small portions for Elinnair of the Mouzenidis Group.

Consequently the major destinations of Santorini, Mykonos, Rhodes, Chania, Heraklion, Kos, will become a critical challenge for the Hellenic Airline when the contract of the 14 regional airports “will come into play”.

Naturally, the remaining low-cost carriers (LCC) fight their battle for the market share as well.

Of course they are unable to compete with Aegean at the “expensive” AIA, but in the regional airports will hardly be fallen short in traffic.

And an additional dynamic factor that will justify the company’s exposure to the market, will be the future, and not distant progression of the Euro – USD exchange rate.

The European currency at this period shows a forged stability around (± 1.10), but after the second half of 2016 and in early 2017, it is expected to “fall” at 0.95/1, or even less.

If this circumstance becomes a reality, then Aegean, exploiting the great alliance it has established with Starwood Group, will become a considerable medium-range European Carrier.

But this will hardly “count” in the wider context, if it wastes the opportunity to acquire Wide Bodied Aircraft, for Transatlantic routes.

It is a “risky” but essential venture. The medium-term future will be the “Touchstone” for such an “opening” of such an extent. The balances are vulnerable, but the planning and the targeted development helps the brave. This of course, provided that the Company will adopt a more balanced policy for all kinds of its crew.

Emmanuel A. Gyzis is managing partner of Emmanuel A. Gyzis & Associates Law Offices.


Emmanuel A. Gyzis is managing partner of Emmanuel A. Gyzis & Associates Law Offices.

He was born in Athens, Greece, 13 January 1947; admitted to Athens Bar Association 1974. Education: University of Athens, Law School (1972), London, (L.LM. 1980), specialized in Aviation Law and originally worked in the respective field on behalf of British Tour Operators and Charter companies. 

With longstanding journalistic and writing activity, his articles have been published in financial newspapers and magazines specialized in Aviation and Tourism. Author of pioneering monographs on the development issues of Olympic Airways (1989), he has published during a course of many years, a series of articles regarding its viability, its position in the international environment, as well as for other private airlines in general, while at the same time he participated in relevant International and Greek Conferences and Organizations. Successful and long-term engagement with issues regarding private airports / heliports, Low Cost Carriers (LCC), Aircraft Fractional Ownership, Ground handling matters. At his law firm “EMM. GYZIS AND ASSOCIATES”, together with a group of specialized associates he deals mainly with aviation law issues (cooperation with construction companies for commercial aircraft and leasing companies) and tourism law issues, specializing in mass tourism from/ to Greece and occasionally cooperating with Tour Operators. Since 1993, he has founded a number of Greek and foreign airline companies, on behalf of his clients, in accordance with the applicable legal status. He has participated in committees for the drafting of legislation regarding air transport, such as private airports, the Presidential Decree for private heliports and the Basic Legislation of the Aviation Code and he is the General Secretary of the Hellenic Aviation Society. For many years, he has been studying emerging markets, as a consultant for foreign companies, which plan to invest worldwide.


MEMBER: Athens Bar Association, International Bar Association, European Society of International Law (ESIL), American Society of International Law (ASIL), British-Hellenic Chamber of Commerce, Greek-American Union, Hellenic Aviation Society.

PRACTICE AREAS: Aviation Law, Aerospace Law, Tourism and Transport Law, (European) Commercial and Company Law. Arbitration. Establishment and Operation of foreign companies in Greece. Project Finance. Free Movement of Capital. Privatization. Foreign/ Hotel Investments. Mergers and Acquisitions.