Olympic Airlines could be relaunched as new company

Airline Industry Information, Oct 13, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Greece may relaunch Olympic Airlines as a new company after a possible failure of the talks to sell it to Olympic Investors - York Capital, an investment group.

Greek business newspaper Naftemporiki said that sources cite an agreement with a Greek businessman, whose company would take over the management of the airline. Greek banks would reportedly take part in the share capital of the new company.

So far no solution has been found for the carrier. Last month a European Commission ruling stated that Olympic Airlines and its predecessor, Olympic Airways, will have to pay back up to EUR540m. The money is considered illegal state aid for the carrier.

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