Greece protects Olympic Airlines' assets to facilitate sale

Airline Industry Information, Oct 18, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

The Greek government is to protect the assets of its struggling national carrier Olympic Airlines from creditors in an attempt to give it more time to find a buyer.

The decision was rushed through as an amendment to an education bill and will protect the airline's assets from any legal claim until 28 February 2005. It is hoped that the move will make the airline more attractive to any potential buyer after previous attempts to privatise the carrier failed.

The airline was set up as a slimmed down successor to Olympic Airways in December 2003 but is heavily debt-ridden and troubled by workers unions. The government said it deemed the action to protect the airline's assets necessary for a successful outcome of any privatisation, reports Reuters.

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