The future of troubled Olympic Airlines came into further doubt yesterday after evidence appeared showing that the government has already informed the European Union that it intends to shut down the state-owned air carrier.

Excerpts from the recent EU decision forcing OA to repay hundreds of millions of euros in illegal state aid show that the government intends to liquidate the company despite its claims that it is investigating other options.

“It is the intention of the Greek authorities to apply to Olympic Airlines and Olympic Aviation provisions of insolvency and liquidate them (the companies). The creditors, mostly the Greek State, will be burdened with the cost,” the ruling said.

A few days before the ruling was announced last week, Prime Minister Costas Karamanlis said that OA cannot continue to operate in its current form, fueling speculation that its is heading for a shutdown.

Since then the government has been trying to put across the message that this is the last option and that every attempt will be made to save the national air carrier.

However, further evidence appeared yesterday that cast doubt on OA’s future and the government’s handling of the case.

An EU ruling says that Greece’s Transport Ministry recognizes in a letter that OA is the successor to Olympic Airways. The previous government had tried to differentiate between the two air carriers, saying that they are different entities and therefore not liable for each other’s debts.