Gliding through the Aegean and Adriatic Seas, the high-end fleet of Hellenic Seaways has transported passengers and freight through some of the world’s most renowned mythical waters and sea passages since 1999. In fact, it’s the region’s largest maritime business. However, despite the smooth sailing its passengers and contractors have come to expect, it wasn’t too long ago that this Greek shipping giant was enduring more difficult times.
Caught in the downward spiral of Greece’s economy after the effects of the Cypriot financial crisis 3 years ago, Hellenic Seaways filed for bankruptcy. The maritime and shipping sector was hit hard by the crisis, resulting in many smaller players selling to large competitors. Meanwhile, passenger traffic continued to shrink substantially as an ongoing result of the Euro debt crisis. Rising bunker prices, as well as interest payments to service the already debt-heavy fleets, saw the company go under.
Enter Antonis Agapitos in 2013, the now-CEO of a completely revived Hellenic Seaways. He managed to bring the company back from the brink, starting with a series of strategic divestments. Between 2013 and 2015, the company sold 5 of its ships to boost liquidity, which was reinvested into new strategic tactics to improve and grow the business.
By 2015, the company’s turnover had jumped by 26 per cent to €132 million, seeing the company make a net profit of €3.9 million and showing a strong rebound from its earlier downturn and 5 consecutive years of losses. The turnaround is attributed in part to the relief of falling fuel prices and an influx of the migrant population to mainland Greece, but is also thanks to a considerable revamp of the Hellenic Seaways business strategy.
The company currently owns and operates 19 conventional and high-speed vessels that connect more than 35 ports in the NE Aegean, the Cyclades, the Saronic Gulf, and the Sporades. Antonis has seen the company reinvest in the first new addition to its fleet since the downturn, as well as renovate its existing ships. Furthermore, it is attracting tourists through a series of improvements across service, experience and travel network upgrades. Speaking with The CEO Magazine, Antonis says he is confident that Hellenic Seaways will remain profitable in 2016–17, and that turnover will continue to increase.
The CEO Magazine: How was Hellenic Seaways founded, and what are some key changes to occur since that time?
Antonis: Hellenic Seaways as it operates today was created in 2005 following the consolidation of a company called Minoan Flying Dolphins and its subsidiaries Hellas Flying Dolphins, Hellas Ferries, Saronikos Ferries and Sporades Ferries. Since then, the company has seen some challenging times, undergoing both growth and contraction. But these past few years it has bounced back and we are embarking on a new course of development, implementing an extensive investment plan of integrating new ships and extending the destinations the company serves.
When you came into the CEO position at Hellenic Seaways, the company had experienced some difficulties, including bankruptcy. What were the strategies you implemented to turn the operation around?
Undoubtedly, the company’s position at that time was really tough, as was the general financial situation in Greece. There have been great economic challenges. Certainly the country’s financial instability during the time we were trying to stabilise the company and achieve profitability was difficult. Focusing on the strategic business plan, enhancing services offered to passengers, and renewing our fleet were the main tools to overcome the situation.
“We are proud to say that our innovative product offerings have been our main contribution to the shipping industry. In 2016 alone, we introduced 3 new vessels offering luxury, quality journeys that have also earned our customers’ trust.– Antonis Agapitos”
We had to implement both short-term and long-term tactics to illustrate that we could grow the business. We set up a driven team dedicated to getting maximum recovery and gain profitability in all aspects. Bringing a passion for success, hard work, finance, best practices and facilitating modern maritime companies, while introducing innovative aspects to both products and services, we were able to flip the situation and transform Hellenic Seaways into a successful business model once more.
Now, with a solid business plan and driven management, we have restricted and launched new initiatives, and been one of the very few companies in Greece to be able to do so. We’re setting a secure path for the business and our customers, and we’re creating and developing new prospects.
Have you been happy with the progress that you have made in the past 3 years? Do you feel that the company is heading in the right direction now?
Yes, absolutely! Hellenic Seaways has become a case study for successful management and business turnaround in Greece. It is not only the technical expertise of our teams that delivered a successful outcome, but also our passion for sea transportation, for supporting remote island communities, and being the ambassador for Greece tourism. We are now focused on executing our latest investment plan, including renewing our fleet, adding new ships, as well as fully renovating the other ones.
We have invested around US$18 million out of the company’s own capital in bringing excellence to Greek sea transportation, and we are delivering continuous years of growth across our operations following an ongoing reinvestment of the company. The rising progress of Hellenic Seaways gives us the reinforcement to continue this plan of being and remaining at the top.
“We are incredibly passionate about the destinations we serve and about the communities we support.” – Antonis Agapitos”
We are now focusing on innovation in our products and services for passengers, to improve the quality of our fleet and our services, and making the journey and booking or planning experience easier and more convenient. Outside the vessels and the wharfs, we were the first ones to introduce the smart ticket and online check-in to the Greek service market. The smart ticket is an application that works through any mobile or smartphone device.
You install the application and buy the tickets through it, so it means you can plan a trip a few hours, or the day, before your trip. This way you can’t lose your ticket, you have it with you always, and if you decide to change your plan or go to more or different islands, you don’t need to go to a travel agent or have cash with you; you just need your credit card and mobile.
What are the key areas of focus to continue to improve the company’s strength in the marketplace?
Our strength now is in our innovation — we are proud to say that our innovative product offerings have been our main contribution to the shipping industry. In 2016 alone, we introduced 3 new vessels offering luxury, quality journeys that have also earned our customers’ trust. Moving forward, we hope to continue to innovate, to improve our quality and offerings in the sea transportation of passengers and cargo, while also always aiming to create continual value for our shareholders.
We are also looking at expanding or finetuning some of our networks to allow new or longer travel options to include new lines between Greece and Turkey, or between Spain and Africa. In the next year, we will be aiming to expand our presence in the Mediterranean Sea cargo transportation markets. Hellenic Seaways is now investing in new ships, exploring destinations and providing its customers with new services.
The company has purchased and built 9 new ships over the years, 2 of which were built entirely in Greece, supporting the Greek shipbuilding industry. As part of the investment plan, early this year Hellenic Seaways relaunched 3 vessels in its existing fleet: the Highspeed 7, the Hellenic Highspeed, and the Nissos Samos.
“We are embarking on a new course of development, implementing an extensive investment plan of integrating new ships and extending the destinations the company serves.” – Antonis Agapitos”
What are some further challenges that Hellenic Seaways has had to overcome to remain ahead of the competition?
Shipping is a hard and very competitive industry, especially when you include shipping as part of the daily sea transport field. All the companies in the industry are working hard, and, for us, being the ambassador of national tourism means it pays to be a market leader. But we have ensured we keep market share because Hellenic Seaways focuses on the passengers’ needs and on quality services. Because of our size and history, Hellenic Seaways is already a pioneer in the sector.
We serve as a case study for other companies to follow, and we are extremely happy to lead the competition.Off-peak seasons for tourism can remain a challenge, as do lingering economic issues and perceptions around instability and safety. 2016 was quieter politically; it was more stable. July 2015 was not a good month for travellers because of the capital controls in the area, but in 2016 we had far more stability and the traffic was better.
It was a good period. Many people from Europe were visiting because Greece has a lot to offer and pricing is more competitive compared to other European spots. The overall traffic is up 5–8% since 2015, but there are still some negative perceptions from tourists, both Greek and international, around certain islands. Greece is safe, though; it’s beautiful and we have a lot to offer.
Hellenic Seaways has won many awards over the years. What do you think makes the company stand out from other players in the sector?
We are not just another maritime company; we are what we call ‘The original Greek maritime company’. We are incredibly passionate about the destinations we serve and about the communities we support. We offer our customers many privileges for returning their trust and believing in Hellenic Seaways’ offering. We are not only focusing on profitability by any means; what we do care about is our passengers and their comfort and safety. Thus, we are investing in implementing many new innovative services.
What are some of the core values that are paramount for Hellenic Seaways?
Safety, liability and commitment to quality services. We incorporate these core values in our daily operations across all segments of the company. This is crucial to our success.
Our mission today remains strong: We want to continually provide a variety of high-quality sea transportation services to passengers and cargo before, during and after travel. In addition, we will always strive to maintain high safety levels during the operation of our ships. This is for the sake of our crew and passengers, and also for the surrounding marine life that might be affected in some way by our operations.
The ongoing modernisation and growth of the Hellenic Seaways fleet, combined with the upgrade of the services we provide to our passengers, constitutes a constant commitment from everyone within the team. Going forward, this will continue to be a front-of-mind strategic goal for the company well into the future.