Rejuvenated
Sep 16, 05, 3:23 am
Source: Airwise (http://news.airwise.com/story/view/1126816246.html)
September 15, 2005
Greece's flag carrier Olympic Airlines will keep flying despite crippling EU fines for receiving state subsidies until privatization efforts are exhausted, the government said on Thursday.
In a signal no imminent closure and grounding of the airline was planned, the Finance Ministry said in a statement: "The government's goal is that the company's privatization should continue as long as it is possible."
The European Commission ruled on Wednesday that Olympic Airways and its successor, Olympic Airlines, must repay as much as EUR540 million (USD$660 million) in state aid and taxes to the Greek government.
The ministry said it would study the Commission's ruling and look into whether and if the requirements would allow for the privatization to continue. It planned to ask the investors if they are still interested in the airline after the ruling.
Olympic Airlines, which flies to 35 domestic destinations, 25 European and 12 intercontinental, posted an EUR87 million (USD$106.3 million) net loss in 2004.
Its main competitor in the domestic market, privately held Aegean Airlines, now boasts a market share of more than 50 percent on domestic routes. It recorded a profit of EUR9.4 million (USD$11.5 million) in 2004.
Olympic Airlines' only assets are its fleet of 40 planes, 18 of which are company-owned, and its landing slots.
The government last month signed a preliminary deal to sell the carrier to Olympic Investors-York Capital, with the agreement subject to the Commission's approval.
Press Minister Theodore Roussopoulos had said the government was likely to sell the airline or wind it up while selling off the carrier's assets.
(Reuters)
September 15, 2005
Greece's flag carrier Olympic Airlines will keep flying despite crippling EU fines for receiving state subsidies until privatization efforts are exhausted, the government said on Thursday.
In a signal no imminent closure and grounding of the airline was planned, the Finance Ministry said in a statement: "The government's goal is that the company's privatization should continue as long as it is possible."
The European Commission ruled on Wednesday that Olympic Airways and its successor, Olympic Airlines, must repay as much as EUR540 million (USD$660 million) in state aid and taxes to the Greek government.
The ministry said it would study the Commission's ruling and look into whether and if the requirements would allow for the privatization to continue. It planned to ask the investors if they are still interested in the airline after the ruling.
Olympic Airlines, which flies to 35 domestic destinations, 25 European and 12 intercontinental, posted an EUR87 million (USD$106.3 million) net loss in 2004.
Its main competitor in the domestic market, privately held Aegean Airlines, now boasts a market share of more than 50 percent on domestic routes. It recorded a profit of EUR9.4 million (USD$11.5 million) in 2004.
Olympic Airlines' only assets are its fleet of 40 planes, 18 of which are company-owned, and its landing slots.
The government last month signed a preliminary deal to sell the carrier to Olympic Investors-York Capital, with the agreement subject to the Commission's approval.
Press Minister Theodore Roussopoulos had said the government was likely to sell the airline or wind it up while selling off the carrier's assets.
(Reuters)