September 17, 2008

EC Approves Greece’s Olympic Airways Plan

The European Commission has approved a Greek government plan to rescue Olympic Airways, Greece's troubled national carrier, a Greek minister said.

Transport Minister Costis Hatzidakis said the government's plan included a "major structural intervention" concerning the airline's problem that "permanently solves an issue that has occupied Greek society and the political system for the past 30 years," Athens News Agency reported.

Hatzidakis said the new air carrier would be privatized, offering job security for its workforce. The plan also will provide for closing the existing debt-ridden company, with simultaneously setting up procedures to establish a new company managed by private investors.

The new company will keep the Olympic Airways name and logo, its profitable routs and airport slots in Greek and international airports, the news agency said..