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Olympic Airways: Significant Improvement in the Traffic Performance

The constant efforts of Olympic Airways<.> staff and Management have started bearing fruit…

The constant efforts of Olympic Airways<.> staff and Management have started bearing fruit. The traffic results of the first four-month period (compared to the respective period in 1999) conclusively prove the positive effect of the recently taken measures, included in the approved Business Plan of the company, such as: flight schedule renewal, improvement of the punctuality and introduction of the new Business Class product in domestic flights.

The elements which have major impact on the overall positive performance of the company are the following:

1. The number of international flights has increased by 13.8%; the total number of passengers has risen by 7.6% and the overall passenger load factor has improved increasing from 54.1% to 56.6%.

What is striking is the increase in Business Class passengers, who reached 18.2%, while the Economy Class has shown an increase of 7.0%.

It is worth noting that this positive trend is further consolidated by the relevant figures in April according to which the figures increased to 24.9% and 13.8% in the Business Class and Tourist Class, respectively, and the load ratio increased from 57.8% to 62.6%.

It is useful to highlight the fact that approx. 80% of total flight operations revenues is derived from sales of international flights. Thus, the increase of passenger traffic on international flights results in an equivalent increase in the company`s total income.

2. In domestic flights, the introduction of the new Business Class (Olympic Club) accompanied with significant benefits and promoted through an advertising campaign for the first time, has had a major response from the public. As a result there has been a significant increase of up to 75.5%.

In order for the company to increase its revenues from international flights (since the greatest part of its revenues derives from this sector), it has proceeded to a planned decrease of its flight schedule limiting domestic flights by 6.9% and laying more emphasis on enhancing the international network (increased flight frequency). This policy has led to the drop of the total domestic passenger traffic by 12.4%. The company anticipates that such drop is temporary and numbers will soon improve.

In April, Business Class passengers in domestic flights from 3,700 in 1999 to 11,900 in 2000. This upward trend in high yield passengers is set continue based on advance bookings.

3. In the sector of cargo transports, there has been an increase in the carried cargo (tons) both in the international and domestic network. In the former, such increase was 10.0% while in the latter 7.4%, Total cargo increase amounted to 9.1%.

It should be noted that the positive trend observed based on April figures is further enhanced by carried cargo.

More specifically, there has been an increase of up to 20.9% in the international network and 12.8% in the domestic network in April. Therefore, the resulting overall increase amounted to 18.1%.

Based on the above figures it is obvious that the overall operating performance of the company has improved significantly, and the policy applied by the Management in order to maximize the company`s strengths in the increasingly intensified competitive environment, coupled with the persistent efforts made the executives and staff have started bearing fruit.

A typical recent example is the unimpeded, and practically without delays, handling of the significantly increased number of passengers during the Easter holiday, for the sake of whom special measures were taken in order to prevent any hardships.

Considering that there is no problem with the staff which could disturb the smooth operation of the company, as well as that bookings for the forthcoming period appear significantly increased, we may deduce that the perspectives for the improvement of the company`s performance on an annual basis are rather positive.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.