Manufacturing Industry

Olympic Airlines will keep flying despite Commission decision

Airline Industry Information, Sept 14, 2005

Olympic Airlines will keep flying even if it is ordered to repay subsidies to the Greek state.

The airline said yesterday (13 September) that it will keep flying despite an expected decision by the European Commission that would make the airline repay subsidies to the Greek state. The ruling is based on the European Union competition laws, under which state aid to airlines is banned. Due to the turmoil caused to travel agents and passengers by the decision, which is likely to cause problems for the already financially strained airline, it said in a statement that it will keep flying, irrespective of the Commission's ruling, The Associated Press reported.

Today (14 September) the Commission ruled as expected that the airline will have to repay the subsidies. The Commission said that the exact figure to be repaid will be clear during the execution of the order and that it would be centred on about EUR350m in taxes and social security liabilities.

Greek unions have called for the government to make sure that the airline survives the ruling. Workers and union members staged a protest at Athens International Airport today before the decision had been announced. No attempts were made to cause disruptions to flights or any other services. A separate protest was held at the airport in Thessaloniki.

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