Olympic Airways Plans Overhaul
Oct. 25, 1999
ATHENS, Greece (AP) _ Olympic Airways' board of directors today approved a plan to restructure Greece's struggling national carrier and make it profitable.
Chief executive Rod Lynch said that the more than 300 improvements outlined in the business plan guarantee an improvement of the company's operational and financial performance.
``It is a systematic and steady build-up,'' Lynch said. ``Nothing spectacular, no rush for growth.''
The airline has been plagued by frequent delays, a poor image among consumers and labor strikes.
Among the measures included in the plan are an improvement in client service, a sale of assets including its New York offices to secure funds for reinvestment within the company and a complete renewal of a nearly 20-year-old fleet.
The airline gave no estimnate of how much it expected to generate from asset sales or how much it will spend on rebuilding the fleet.
Lynch also said he expects the company to see a profit at the operating level by 2002.
Debt-burdened Olympic is struggling to win back passengers after a series of strikes and other labor-related problems. It is currently being managed by Speedwing, a subsidiary of British Airways.