Olympic Airlines, with a share capital of 130 million euros, has chalked up 107 million euros in losses since its setup as a new debt-free airline just a little better than a year and half ago.
While the bidding process for the purchase of Olympic Airlines by a private concern is plodding on, the troubled state carrier is losing money due to an expensive aircraft leasing program and does not have a single plane in reserve.
OA has been routinely canceling about six to seven flights daily, since a lack of funds has prevented the acquisition of five planes contracted for in January.
At present, the company is leasing, on short notice and at considerable expense – over 5 million euros per case, enough to lease four or five planes for a year – planes and crews, often from obscure foreign airlines. OA’s pilots’ and engineers’ unions have denounced the policy as too expensive and leading to loss of market share.