Page 124 - ΕΛΛΗΝΙΚΗ ΑΕΡΟΠΟΡΙΚΗ ΒΙΟΜΗΧΑΝΙΑ - 50 ΧΡΟΝΙΑ | HELLENIC AEROSPACE INDUSTRY - 50 YEARS

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the 1990s and 2000s
Ιn 1990, the Deputy Minister of Defense an- nounced at the general meeting of HAI’s share- holders the establishment of a committee to remediate the company. the committee would also examine the possibility of privatizing the company. In this context, Lockheed signed a
new agreement with the Greek government: the American company would take over the “techni- cal management” of the HAI for three years, with the aim of restructuring and rationalizing it and drawing up a privatization program.
the American management brought about a series of significant structural changes in the com- pany’s management and internal operation, which had a decisive impact on its character and course. One of the most important innovations introduced was the creation of the position of chief executive officer, who absorbed a large part of the president’s responsibilities and was tasked with implementing the company’s programs and decisions, while the Board of Directors was limited to the role of for- mulating the company’s strategy. Another important change was the restructuring of the company in 1991
based on its business activities into four main corpo- rate units, to which the respective departments and divisions would report. this is how the HAI divisions, as we know them today, were created.
the immediate concern of the new manage- ment was to improve the company’s finances by achieving operational profitability. In this context, it renegotiated the Basic Agreement with the PA, achieving more favourable financial terms for the HAI. the Board of Directors also proceeded with the detailed recording and revaluation of the com- pany’s assets and the sale of surplus equipment. the HAI also drastically reduced its operating ex- penses through staff reassignments, reducing its workforce from 3,503 in 1990 to 2,981 in 1994. the results of these structural changes soon became apparent. the 1993 financial year closed with op- erating profits of 2.6 billion drachmas, while HAI remained profitable throughout 1994 and 1995.
In June 1994, the Greek government’s contract with Lockheed came to an end, but the govern- ment had decided not to proceed with the pri- vatization of the national industry. Instead, it pro-
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