Greece threatened with fines over airline
Greece threatened with fines over airline
The battle continues…. The Greek government is trying to hold onto it’s golden egg(think votes and jobs for friends and relatives) and the European Commission wants them to play by the rules….. The airline should be safe until October…but after that….who knows….
05 April 2006 14:49
The European Commission has warned the Greek government that it must recover €160m worth of subsidies given to the national airline, Olympic Airlines, or face fines.
The Greek national carrier, previously known as Olympic Airways, has registered losses almost every year since 1977.
Officials in Brussels say the subsidies, paid during the airline’s restructuring between 1998 and 2002, clearly violate EU competition law.
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They say the Greek government has ignored calls for the money to be paid back and for the financial assistance to stop.
Greece has been attempting to delay a decision by Brussels to refer the case to the European Court of Justice.
Reports from Athens say one of the options being considered is to close down Olympic Airlines altogether and create a new company using private investors.