Olympic airways troubles

[Angelo]

Basically whats going on with Olympic airways, is the E.U is telling Olympic airways to

pay back hundreds of millions of euros in illegal subsidies since the 90s,at the same time

the greek supreme court ordered the state to pay 563 millions euros unpaid services.

Other airliners are suing the european commision for failing to act on the

complaints the Greek government provided illegal state aid to Olympic Airlines.

Olympic airways is facing bankruptcy.

In 2005 Olympic airways profit was 61.8 million euros

[Angelo]

EU can 'no longer wait' for Greek govt solution for Olympic Airways
12.10.07, 7:41 AM ET





BRUSSELS (Thomson Financial) - The European Commission said its can 'no longer wait' for the Greek government to come up with a plan for troubled national carrier Olympic Airways.

A spokesman for EU transport commissioner Jacques Barrot said: 'The time for waiting has already expired. We are convinced we have to move quick on Olympic, mostly ... in order to guarantee that Greek taxpayers' money is not given out (as) illegal state aid to the company.'

When asked whether the carrier should be placed in bankruptcy, the spokesman said: 'I am afraid it is not up to me to decide what the possible solutions are.'

He affirmed that Barrot has mentioned the example of Belgian carrier Sabena which was put into bankruptcy. 'He said it seemed to him to be one possibility, but we mustn't forget that in a different situation then a different solution might well be applied.'

'One thing is clear. We can no longer wait in the case of Olympic. We have to find a solution which is in line with community legislation'.

The spokesman added that the EU executive is concerned about the Greek islands' reliance on the airline's operations.

'The question of the islands is obviously at the heart of our concerns. (But) there is nothing in community legislation to prevent the islands being served through a system of public service obligations. I think this applies to Greece too,' he said.

The spokesman reiterated that restructuring aid for Olympic had been cleared by the commission in the 1990s under its 'first time, last time' principle.

Under the rules, once a plan has been approved there is a uniform period of ten years during which the beneficiary of the aid may not receive any additional rescue or restructuring aid.

The measure is designed to prevent repeated granting of rescue or restructuring aid that keeps companies artificially in business.

Since then, the commission has taken two decisions. Firstly, in December 2002, it ordered Athens to recover illegal aid paid to the carrier between 1998 and 2002. This was confirmed by the EU courts in Luxembourg, estimating the monies at 160 mln eur.

Secondly, in September 2005, the commission ordered further recovery of aid paid out after 2002. Greece has challenged this decision and the case is pending before the EU courts

[Prokomenos]

I hope Greece comes up with a solution regarding Olympic airlines.. It would be a shame to see it go.